Gold (XAUUSD) & Silver Price Forecast: China Buying Supports Metals — Will XAU & XAG Extend Gains?

Gold and Silver Consolidate as Inflation Data and Ceasefire Stability Shape Outlook

Gold and silver had a lacklustre day on June 2, 2026, as traders digested April’s U.S. inflation report, which registered above consensus. Meanwhile, the stability of the U.S.-Iran truce is also being scrutinised.

The headline and core April data both came in higher than expected, dampening hopes for near-term rate cuts under Warsh. Higher real rates and a firmer dollar are also weighing on gold and silver prices.

Gold’s official sector buying has been a robust undercurrent. The People’s Bank of China has kept buying gold for more than 17 months in a row, and other central banks in the emerging world are also adding to their hoards.

In the meantime, silver’s large industrial component is being buoyed by steady deficits, while safe-haven flows are somewhat subdued. This underpinning is largely due to the energy industry, which relies on silver for products such as electrical components, electric vehicles, and AI-related components, although interest has dropped slightly amid lower energy prices.

Gold and silver are, for now, being propelled less by current headlines as the cease-fire remains stable and normalisation of oil flows continues to progress. With the next tranche of Fed commentary and economic data on tap, the metals will once again look for signals.

Gold Spot Rebounds to $4,534 – Blue Descending Channel Floor Bounce

Gold spot has bounced back and is now at $4,534 bouncing from the floor of the blue descending channel. The 2-hour chart has green continuation candles which are bouncing back off the blue descending channel floor at 4526 and 50MA at 4526. The higher lows of the 4418 swing point are bullish engulfing bodies, and the supply of sellers is exhausted.

RSI is at over 52, and it has positive strength but is nowhere near to the overbought. From the May high, the next resistance could be 4550-4576 based on the Fib.

The volume profile shows 4526 as a strong dynamic floor where the buyers absorb the supply from sellers, but it is possible that the 4635 white descending trendline can limit the upside. The channel structure is still descending channel, but the price action above 4526 looks neutral/bullish. Clean channel support being tested.

Trade Idea: Buy $4,534 target $4,576, stop $4,500.

Silver Spot Surges to $76.55 – Red MA Rejection Clears

The Silver Spot is at $76.55, and the red MA has been rejected. On the 2-hour chart, the green candles have recovered the red 50-period MA level near $75.80 as well as the blue ascending trendline support. Higher lows have been made from the $74.30 pivot with bullish rejection wicks, which has absorbed distribution.

The RSI is up at over 55 as the price has momentum to the upside and the volume backs up this advance. Based on the Fib, the price may find resistance at $77.32 to $78.00 next. Structure is bullish above $75.50 as the price breaks out of short-term down channel.

Trade Idea: Buy $76.55 target $77.32, stop $75.80.