Gold (XAUUSD) & Silver Price Forecast: Gold Above $5,000, Silver Over $105 – Is This Just the Start?

Market Overview

Gold (XAU/USD) extended its powerful bullish rally and reaching a fresh all-time high of $5,093 on Monday. As of now, the commodity is trading at $5,056 level. However, the commodity is getting strong support from increasing geopolitical tensions and trade uncertainties, which boosted the demand for safe-haven assets like gold.

At the same time, growing expectations that the US Federal Reserve will move toward policy easing ahead of the key FOMC decision are further supporting gold prices.

Meanwhile, Silver (XAG/USD) has also maintained its upward momentum and trading at $107.55, hitting an intraday high of $109.46. However, the rally was supported by the same factors supporting gold.

Geopolitical Tensions Push Investors Toward Gold

On the geopolitical front, US President Donald Trump’s renewed tariff threats have shaken global markets. He warned that Canada could face a 100% tariff if it goes ahead with a trade deal with China. This uncertainty has pushed investors toward safe-haven assets like gold, sending prices to new record highs.

At the same time, US-brokered talks between Ukraine and Russia ended without any agreement, which was seen as another key factor that put pressure on market sentiment. On top of that, the disagreements between the United States and NATO over Greenland have raised worries about trust within the alliance.

Therefore, these geopolitical tensions have increased uncertainty in the market, pushed investors toward safe-haven assets like gold.

Fed Rate Speculation, Central Bank Buying, and Surging ETF Demand Boosted Gold

On the US Fed front, markets are expecting the Federal Reserve to cut interest rates twice in 2026. This has weakened the US dollar and boosted demand for gold. Traders are now closely watching the two-day FOMC meeting, paying special attention to Fed Chair Jerome Powell’s remarks for hints about the future of monetary policy.

On the US Fed front, markets are expecting the Federal Reserve to cut interest rates twice in 2026. This has weakened the US dollar and boosted demand for gold. Traders are now closely watching the two-day FOMC meeting, paying special attention to Fed Chair Jerome Powell’s remarks for hints about the future of monetary policy.

Moreover, Gold’s rally was also supported by strong institutional demand as China’s central bank extended its gold-buying streak for the fourteenth month. On the top of that, the major emerging-market central banks, including those of Poland, India, and Brazil, continued to be active buyers in early 2026.

On the flip side, the global investment demand through gold ETFs has also surged. Gold holdings rose to 4,025.4 tonnes in 2025 from 3,224.2 tonnes in 2024, with total assets under management reaching $558.9 billion. These strong central bank purchases and record ETF inflows are also helping gold to stay high.

Gold Prices Forecast: $5,070 Holds as Bulls Defend Breakout Zone

Gold is trading near $5,075, consolidating after a strong upside extension that cleared the prior $5,000 barrier. On the 2-hour chart, price remains above a rising trendline from the $4,900 base, keeping the short-term structure firmly bullish. Recent candles near $5,080 show small bodies with upper wicks, signaling digestion rather than rejection after the breakout.

Fibonacci retracement from the $4,900 swing low to the $5,094 high highlights key support at the 0.236 level near $5,048, followed by deeper support at $5,020 (0.382) and $4,997 (0.5). As long as price holds above this zone, pullbacks remain corrective. RSI is holding near 70, reflecting strong momentum without clear bearish divergence. Upside resistance sits near $5,130, then $5,165.

Trade idea: Buy pullbacks toward $5,050, target $5,160–$5,200, stop below $4,995.

Silver (XAG/USD) Price Forecast: $108 Pauses as Bulls Guard the Breakout Zone

Silver is trading near $107.70, easing slightly after a sharp surge that pushed price into the $109.00–$109.50 resistance area. On the 2-hour chart, silver remains firmly inside a rising channel, with price still holding above the upper trendline that was broken earlier this week. Recent candles show smaller bodies with upper wicks near $108–$109, pointing to consolidation rather than distribution.

Fibonacci retracement from the $94.23 low to the $109.51 high places first support at $106.70 (0.236), followed by $104.90 (0.382) and $103.50 (0.5). As long as price holds above this zone, pullbacks remain corrective. RSI is near 68, cooling from overbought levels while staying bullish. Resistance remains at $109.50, with extension risk toward $113.50 if broken.

Trade idea: Buy dips near $105.00, target $112.00, stop below $102.00.