Gold (XAUUSD) & Silver Price Forecast: Buyers and Sellers Tussle Near $3,291, $33.05 Levels

Market Overview

Gold prices (XAU/USD) dipped below $3,300 during Friday’s Asian session, pressured by a modest rebound in the US Dollar. The dollar’s strength, driven by cautious positioning ahead of key US inflation data, weighed on non-yielding assets like gold. However, losses were tempered by ongoing geopolitical tensions and trade policy developments that bolstered the metal’s safe-haven appeal.

The legal tug-of-war surrounding former President Trump’s tariffs added to market uncertainty. A US federal appeals court reinstated the tariffs after a trade court ruling had blocked them, creating a volatile backdrop that supported gold. Investors also kept a close eye on fragile peace talks between Russia and Ukraine and shifting signals from the Middle East, adding to risk sentiment.

Kremlin spokesperson Dmitry Peskov confirmed receiving Ukraine’s response to peace talks in Istanbul, while the White House announced a tentative ceasefire proposal from Israel, though its acceptance remains uncertain.

Fed’s Inflation Data and Rate Cut Prospects Shape Gold’s Path

Market participants remained cautious ahead of Friday’s US Personal Consumption Expenditure (PCE) Price Index, the Federal Reserve’s preferred inflation gauge. A cooling in inflation could raise expectations for interest rate cuts, potentially weakening the dollar and lifting gold.

Conversely, stronger inflation data could reinforce a hawkish Fed stance, strengthening the dollar and capping gold’s upside. Federal Reserve minutes revealed a “wait-and-see” approach, with policymakers balancing risks to inflation and employment.

Chicago Fed President Austan Goolsbee and San Francisco Fed President Mary Daly suggested two potential rate cuts this year, contingent on continued disinflation and labor market resilience.

Dallas Fed President Lorie Logan emphasized balanced risks, while Fed Chair Jerome Powell reiterated that future rate moves hinge on incoming data.

Silver Holds Ground as Gold Struggles for Direction

Meanwhile, silver (XAG/USD) prices traded steadily near $33.20, supported by underlying geopolitical uncertainty and consolidation patterns. The market’s focus remains split between inflation data and global tensions, keeping silver’s technical levels in play.

Short-Term Forecast

Gold and silver remain trapped in tightening technical ranges as traders await key US inflation data. Watch for breakouts in gold at $3,325 or silver above $33.44 for direction.

Gold Prices Forecast: Technical Analysis

Gold is balancing on a knife’s edge around $3,291, with price action squeezed between converging trendlines. On the 2-hour chart, we’re seeing a descending triangle formation, with support near $3,286 and resistance capped by the falling trendline at $3,325.

The 50-EMA at $3,292 and the 200-EMA at $3,288 are adding more friction here. The cluster of small-bodied candles and lower highs suggests indecision, while a break below $3,286 could drive a drop toward $3,247.

On the flip side, reclaiming $3,325 may ignite a rally toward $3,366. This pattern calls for a cautious approach; traders should watch for a decisive move out of this tightening range before jumping in.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver’s holding its ground at $33.05, caught in a tightening wedge between rising trendline support and falling resistance. Price action on the 2-hour chart shows multiple bounces from the rising trendline, and the 50-EMA ($33.18) along with the 200-EMA ($32.95) are guiding the market.

The range is narrowing, with support near $32.98 and resistance capping out around $33.44. Small-bodied candles and failed breakouts hint at indecision, but a confirmed push above $33.44 could target $33.70 or higher.

If the price slips below the trendline near $32.98, it may head for $32.62 or $32.42. Patience is key here; wait for a breakout before deciding to go long or short.