Gold (XAUUSD) & Silver Price Forecast: Can Safe-Haven Demand Drive Gains?

Market Overview

Gold (XAU/USD) edged higher in the European session, recovering from an intraday low near $3,360 as traders assess the impact of upcoming US-China trade talks in Switzerland.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are expected to meet Chinese officials, marking the first formal dialogue since the US imposed steep tariffs on Chinese goods. However, mixed signals from both sides continue to weigh on investor sentiment.

Meanwhile, the stronger US dollar, which rose 0.2% to 102.30 ahead of the Federal Reserve’s two-day policy meeting, is adding pressure on gold prices.

Traders are looking for clarity on the Fed’s interest rate path, with many expecting a pause in hikes but little chance of an immediate cut. “With the Fed unlikely to signal an immediate rate cut, gold could remain range-bound until clearer policy signals emerge,” noted a senior commodities analyst at ANZ Bank.

Silver (XAG/USD) is trading around $33.06, benefiting from ongoing geopolitical tensions and market volatility, reinforcing its status as a safe-haven asset amid broader economic uncertainties.

Short-Term Forecast

Looking ahead, traders will closely monitor the outcome of the Fed’s meeting for any signals on interest rates, which could influence gold and silver prices. A break above $3,391 for gold and $33.39 for silver would signal fresh bullish momentum, while failure to clear these levels could prompt further consolidation.

Gold Prices Forecast: Technical Analysis

Gold is trading around $3,391, testing the 23.6% Fibonacci retracement level at $3,383, a key support zone following its recent rally. The 50-day Exponential Moving Average (EMA) at $3,332 provides additional support, reinforcing the bullish trend that started in late April.

If gold holds above this level, the next major resistance sits at $3,431, aligning with the recent swing high. A break above this level could trigger a move toward $3,463 or even the psychological $3,500 mark.

However, a drop below $3,383 could expose the market to a deeper pullback, with potential support around the 38.2% Fibonacci level at $3,352 and the 50% retracement at $3,328.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading around $33.05, holding above the 50-day Exponential Moving Average (EMA) at $32.76, a critical support level that has reinforced its recent rally.

Immediate support is seen at $32.83, aligning with a rising trendline that has guided this recovery. On the upside, the next resistance is at $33.39, a level that, if cleared, could open the door to the $34.05 region, a key swing high from late April.

However, a break below $32.83 could expose the market to a deeper pullback, with the next support zone around $32.44, potentially reversing the current bullish momentum.