Gold (XAUUSD) & Silver Price Forecast: Can Tariffs Push Gold Toward $4,720 and Silver $100?

Market Overview

Gold (XAU/USD) extended its upward trend and remained well bid around $4,670 level, reaching an intraday high of $4,690. However, the rally was triggered by US President Donald Trump’s announcement that he would impose tariffs on eight European nations opposing his plan to acquire Greenland.

In contrast to this, strong US economic data has reduced expectations for a near-term Federal Reserve rate cut, supporting the US Dollar (USD) and possibly limiting further gains in gold.

Meanwhile, Silver (XAG/USD) followed a similar trend, trading at 93.13 and touching an intra-day high of 94.1365, supported by safe-haven demand amid US-Europe trade tensions.

Gold Rises as US-Europe Trade Tensions Escalate

Gold gained strength after US President Donald Trump announced plans to impose a 10% tariff on goods from eight European countries. These include Denmark, Sweden, France, Germany, the Netherlands, Finland, the UK, and Norway.

The tariffs are set to start from February 1 and will continue until the US is allowed to purchase Greenland. This unexpected announcement put pressure on markets and pushed investors toward safe-haven assets like gold.

As a result of this, the European Union quickly responded, with EU ambassadors agreeing to try and stop Trump from going ahead with the tariffs. At the same time, they are preparing possible retaliatory measures if the duties are applied. Hence, the uncertainty around trade tensions between the US and Europe created fear in the markets, boosting demand for traditional safe-haven assets.

US Economic Strength Supports Dollar, Puts Pressure on Gold

Moreover, a series of US economic reports, especially stronger jobs data, have reduced expectations for immediate US Federal Reserve (Fed) rate cuts. Investors now expect the next rate cuts to happen in June or September instead of January or April.

Therefore, the expectation that the Fed can keep interest rates higher for a longer time generally supports the US dollar.

Despite gold can benefit during uncertainty, strong US economic data and the possibility of prolonged higher rates put some pressure on gold prices.

Gold Prices Forecast: Technical Analysis

Gold spot (XAU/USD) is trading around $4,673.95, showing steady momentum within a rising price channel on the 2-hour timeframe. The current candlesticks are reflecting a surge of around +0.08%, with price action supported by higher lows and upward-sloping moving averages.

Key resistance sits near $4,690, while support levels are holding at around $4,639.30 and $4,600.00. A breakout above $4,691.70 could open the path toward $4,720.00 and $4,756.04, especially if volume confirms strength. However, failure to hold above the channel’s midline may trigger a pullback toward $4,639.30.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading around $93.55, solid with strong bullish momentum, especially within a rising price channel on the 2-hour chart. The current candlesticks reflect a gain of 0.32%. At the same time, the price action is supported by higher lows and upward-sloping moving averages.

Key resistance sits at $93.96, followed by $97.15 and $100.00, while support levels are marked at $90.15 and $86.66. A breakout above $93.96 could open the door to $100.00, especially if volume confirms the strength.