Gold (XAUUSD) & Silver Price Forecast: Geneva Talks & Trade Wars – Gold’s New Peak?

Market Overview

Gold (XAU/USD) has carried on from where it left off yesterday, blasting right through the $5,200 barrier with ease – all signs of a safe-haven asset in strong demand – and it’s no surprise really. All that uncertainty over trade and those ongoing conflicts driving risk aversion in the market.

It’s this risk-off sentiment that’s pushing investors to grab onto gold as a place to hide, and so far there are enough big-name investors to help give the rally some real legs. There’s still some nervousness in the air though – these US-Iran talks are looming and no one wants to be stuck on the wrong side of a big trade.

Trade Policy Uncertainty Still Fuelling Yellow-Metal Gains

The yellow metal is getting a nice run from renewed market uncertainty- courtesy of Donald Trump making a whole lot of noise on trade.

To give you the short story: Trump’s import tax plans got blocked by the Supreme Court but he’s not letting up. He’s just found another way to put in place a 10% tariff – and who knows, it could be going up to 15% next. For now, the 10% tariff stays.

US-Iran Tensions Keep Safe-Haven Gold in the Spotlight

Then there’s the US-Iran situation – it’s like they’re getting ready for all-out war. The latest news is that the US and Iran are gearing up for a third round of nuke talks – though with Trump at the helm, no one knows what’s likely to happen. His State of the Union speech did little to calm nerves when he basically said that Iran was going to have to put its nuclear plans on ice – and if they don’t watch out, the US will not be afraid to strike.

Analysts will be keeping a close eye on the US-Iran talks, trade developments and what the Fed is up to. One thing is for sure: any further escalation in trade or geopolitical tensions will give gold an extra boost in the coming days.

Gold Price Forecast: $5,155 Support Holds as Ascending Channel Targets $5,330

Gold (XAU/USD) is sitting at $5,193 on the 2-hour chart – and still holding firm just above that key $5,155 support level that’s been holding tight inside a rising channel. We can see that recent candles are putting in higher lows against the lower trendline, and while there are some rejection wicks lurking just above $5,247 those are just telling us there’s some short-term supply in there.

For now, though, the price is still sitting above that 50-period moving average at around $5,140, which is giving us a nice bit of near-term support, and with the 200-period moving average a long way down at $5,046, that’s also telling us that the overall trend is still pretty bullish.

If we do see a break above that $5,247 level then the next couple of resistance levels to watch for are $5,292 and $5,331.

Trade idea: Buying above $5,250 with a target of $5,330, but be sure to set a stop-loss below $5,150.

Silver Price Forecast: $88.70 Support Still In Play as Rising Channel Targets $94.80

Silver (XAG/USD) is hovering at around $89.20 on the 2-hour chart, pulling back a bit toward that $88.70 support line which is part of a pretty clear rising channel. The recent candles are showing us long lower wicks forming around the $88.70 area, which is a pretty clear sign that there’s a lot of demand kicking in down at the bottom of the channel.

The price remains well above that 50-day EMA at $87.90, and the bigger picture is still painting higher highs and higher lows all over the place. The upper boundary of that channel is basically sitting right at $94.80 resistance, just shy of that big-time supply zone at $98.50.

The RSI is currently sitting at around 55, so the momentum’s moderate at best, with nothing too extreme going on.

Trade idea: Buy near $88.80 with a target of $94.80 and an exit stop loss below $87.50