Gold (XAUUSD) & Silver Price Forecast: $5,280 Record, $117 Silver – Can Fed Fuel the Next Leg?

Market Overview

Gold (XAU/USD) extended its strong bullish trend, remaining well bid above the $5,240 level and hitting a fresh record high near $5,247. However, the rally was mainly supported by a weaker US Dollar and ongoing geopolitical tensions. Apart from this, investors stayed vigilant ahead of the Federal Reserve’s interest rate decision. Therefore, more investors turned to Gold as a safe haven amid global uncertainty.

Weak US Dollar Lifts Gold Prices

On the US front, the broad-based US dollar failed to stop its bearish rally and remained under pressure. However, the losses got further pace after President Donald Trump said on Tuesday that the US Dollar is “great,” despite its recent drop.

Surprisingly, his words pushed the dollar to its lowest level since February 2022. Therefore, the weaker dollar made Gold more attractive for investors looking for safe-haven assets.

Normally, a strong dollar attracts safe-haven buyers, but this time the dollar’s drop actually gave a boost to the Gold prices. Traders are now considering the weaker dollar as one of the main reasons behind Gold rise.

Geopolitical Tensions Boost Safe-Haven Demand

Apart from the weaker dollar, ongoing geopolitical tensions was seen as another key factor that helped gold to reach all time high. As we know, President Trump  recently threatened to take control of Greenland, impose tariffs on Europe. He also warned that Canada could face 100% tariffs if it signs a trade deal with China. As a result, demand for Gold, seen as a safe-haven asset, has increased significantly.

Fed Decision in Focus for Markets

On the other hand, investors are closely watching the Federal Reserve’s interest rate decision scheduled on Wednesday. However, the Fed is expected to keep interest rates unchanged in the 3.50% to 3.75% range after cutting rates at three straight meetings late last year.

Hence, markets will pay close attention to Fed Chair Jerome Powell’s press conference. Any hawkish signals could limit further losses in the US dollar and weigh on Gold prices. In contrast to this, any dovish remarks could extend Gold’s rally even further.

Gold Price Forecast: XAU/USD Holds $5,235 as Bullish Channel Targets $5,410 Next

Gold is still trending higher, now trading close to $5,280 after moving past its previous all-time high. The price is following a rising channel, with both higher highs and higher lows seen in short-term trading. The recent move above the $5,235 to $5,260 resistance area suggests the trend is continuing, not ending.
Momentum is still positive.

The RSI is high but not showing signs of a reversal, which points to a strong trend. The price is also well above the 50- and 200-period moving averages, both of which are rising, supporting the bullish outlook.

The first support level is at $5,235, with more support between $5,185 and $5,145 near the middle of the channel. If gold stays above $5,280, it could move up to $5,340 or even $5,410, and possibly reach $5,500 if the strong momentum continues.

Silver Price Forecast: XAG/USD Defends $111 Support as Uptrend Eyes $120 Break

Silver is taking a pause after failing to break above $117.70, but the overall trend is still positive and steady. The price is staying above the rising trendline and remains above the important Fibonacci retracement zone between $111.20 and $107.30, which has been a strong support area during the rally.

The recent pullback has eased overbought conditions but has not changed the overall trend. The RSI has moved closer to neutral but is still above 50, which suggests the market is just taking a breather, not reversing. The price is also still above the 50-period moving average, so the short-term outlook stays positive.

If silver stays above $111, it could make another move toward $117.70, and a breakout could lead to $120 or even $123. The bullish outlook would only change if the price drops below $107.