Gold (XAUUSD) & Silver Price Forecast: $4,600 Breaks as Silver Slips to $75—Bounce or More Pain?

Market Overview

Gold prices (XAU/USD) started the week on a sharp bearish track, dropping below the $4,600 level. However, the downward trend comes after U.S. President Donald Trump nominated Kevin Warsh as the next Chairman of the Federal Reserve. Hence, the decision eased market uncertainty and put pressure on the safe-haven gold.

Although Warsh has supported Trump’s push for lower interest rates, markets remain cautious about his long-term approach. He has also raised concerns about inflation and opposed the Fed’s large-scale asset purchases. As a result, investors worry that monetary policy could stay tighter than expected.

Meanwhile, the silver price also lost traction and slipped to $76.48, down 9.72%, as investors followed gold’s weakness. However, the stronger dollar and reduced demand for safe-haven assets pushed traders to stay away from precious metals, keeping silver under pressure across global markets.

Stronger Dollar and Hopes of US-Iran Talks Cool Safe-Haven Demand for Gold

In addition to this, the US dollar gained traction strongly after Warsh’s nomination, recovering from a recent four-year low. Therefore, the stronger dollar usually makes Gold more expensive for foreign buyers. Hence, the dollar’s rebound put further pressure on Gold prices.

Apart from this, easing geopolitical fears also weighed on Gold. As per the latest repot, the US and Iran are open to renewed negotiations over Iran’s nuclear program. For instance, an Axios report said mediators are working to arrange talks between US and Iranian officials in Turkey this week. As a result, some investors reduced their preferences to safe-haven assets like Gold.

Gold Holds Strong January Gains as Traders Await Key US Jobs Data for Direction

Despite the recent plunge, Gold still ended January up nearly 15%, supported by earlier geopolitical risks and uncertainty around global growth. However, the direction will likely depend heavily on the upcoming US economic data.

Besides this, traders are closely watching U.S. labor data, particularly Friday’s Nonfarm Payrolls report. Since this is important data, the results will likely affect expectations for interest rates. For example, if job growth comes in weaker than expected, it could revive hopes for rate cuts and provide some support to gold.

Gold Price Forecast: $4,600 Rebound or Deeper Pullback After Sharp $1,000 Drop?

Gold (XAU/USD) is trading around $4,610 after dropping sharply from its $5,600 high, marking one of the largest corrections in recent months. On the 4-hour chart, the price fell below the 50-EMA near $4,980, which increased selling before it found short-term support just above the 200-EMA at about $4,350. The large red candles suggest traders are taking profits quickly, not a gradual change in trend.

The overall uptrend is still in place, but momentum has slowed. The RSI is near 30, indicating oversold conditions that often precede a short-term pause or a technical bounce. The next resistance is at $4,700 to $4,750. If the price falls below $4,350, it could head toward $4,170.

Trade idea: Look for a rebound near $4,350 with a target of $4,700. This idea is invalid if the price drops below $4,170.

Silver Price Forecast: $75 Holds After Sharp Sell-Off—Is a $85 Rebound Next?

Silver (XAG/USD) is trading around $75.40 after falling quickly from the $105 to $110 range, reversing its recent sharp rise. On the 4-hour chart, the price broke below the rising channel and dropped under the 50-EMA near $95, showing a short-term trend change.

Large bearish candles suggest traders are taking profits quickly, not slowly selling over time. The price is now just above the 200-EMA, around $74 to $75, which is an important support area. The RSI is below 30, showing oversold conditions that often lead to a pause or a bounce. The next resistance is at $85, then $95. If the price drops below $73.80, it could fall toward $64.

Trade idea: Look for the price to hold above $74 for a possible bounce to $85. If it falls below $73.80, expect further downside.