Gold (XAUUSD) & Silver Price Forecast: Gold Stable Above $4,200, Silver Targets $61.83

Market Overview

Silver extended its rally on Wednesday, briefly touching an unprecedented $60 per ounce, driven by tightening supply conditions and a sharp rise in industrial demand forecasts.

The Silver Institute projects multi-sector consumption to accelerate through 2030, citing surging requirements from solar manufacturing, electric vehicles, charging infrastructure, and power-intensive data centers supporting artificial intelligence workloads.

Silver’s supply deficit, now entering its fourth consecutive year, has become a core bullish catalyst. The metal was recently added to the U.S. critical minerals list, amplifying expectations of long-term strategic demand.

“Metals are volatile by nature, but unless we fix the deficit, silver only has one way to go, and that is up,” said Maria Smirnova, senior portfolio manager and CIO at Sprott Asset Management.

Gold Tracks Higher as Rate-Cut Bets Strengthen

Gold advanced during the Asian session, supported by growing conviction that the Federal Reserve will cut interest rates at the conclusion of its two-day policy meeting. Futures markets now assign an 87.4% probability to a 25-basis-point reduction, a shift that has tempered real yields and lifted precious-metal sentiment.

“The move in gold right now is attributed to the big spike in silver and the high expectations for another quarter-point cut,” said Bob Haberkorn, senior market strategist at RJO Futures. Investors are positioning for a more accommodative policy path into early 2026, with several institutions forecasting additional easing should economic data soften.

U.S. Labor Data Adds Mixed Signals

The latest JOLTS report showed job openings rising to 7.67 million, well above the 7.15 million consensus estimate and slightly higher than September’s 7.66 million figure. While the data suggests the labor market remains resilient, traders expect the Fed to prioritize disinflation progress over employment strength when shaping its final stance.

Gold and silver markets now enter the Fed’s announcement window with elevated volatility, reflecting the growing divergence between industrial-driven silver demand and macro-policy-driven gold flows.

Short-Term Forecast

Gold is likely to drift between $4,200 and $4,238 ahead of the Fed decision, while silver may consolidate near $61.15, with $60.09 acting as immediate support.

Gold Prices Forecast: Technical Analysis

Gold is trading near $4,216, holding above the rising trendline that has guided price since late November. Candlesticks show consistent support around $4,200, where buyers repeatedly step in with higher lows. Gold is also hovering near the 50-EMA, keeping momentum stable.

Immediate resistance sits at $4,238, followed by $4,258. A close above these levels would confirm trendline strength and open room toward $4,290. On the downside, losing $4,200 exposes $4,157 as the next support, with the 200-EMA reinforcing that zone.

RSI is climbing toward mid-60s, signaling improving buyer interest without overextension. Overall, the structure favors gradual upside as long as Gold stays above the ascending trendline and the $4,200 support.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading near $61.15, pushing against the upper boundary of its ascending channel after a strong move from the $58.55 support area. Candlesticks show steady higher lows along the mid-channel trendline, while the recent breakout attempt toward $61.83 signals firm buying pressure.

Price is holding above the 20-EMA, reinforcing short-term momentum. A decisive close above $61.83 would open the way toward $63.15 and the channel top near $64.50. If price pulls back, support sits at $60.09, followed by the mid-channel zone around $58.55.

RSI is elevated but not reversing yet, suggesting momentum remains constructive. Overall, Silver stays bullish as long as it trades within this rising channel structure.