Gold (XAUUSD) & Silver Price Forecast: Industrial Demand and Fib Levels Guide Moves

Market Overview

Gold and silver are currently drawing investor attention as markets get a reality check: growth has slowed, interest rate expectations have shifted, and the market has constant uncertainty. Central banks are still a major source of gold demand. World Gold Council figures show that, for a 3rd straight year in 2025, official sector purchases cracked the 1,000-tonne mark.

Silver, on the other hand, is increasingly driven by industrial demand. It’s estimated that more than 55% of the silver consumed globally is now used for manufacturing, a large share of which goes into solar panels, electric vehicles, and electronics. The solar sector is projected to use over 200 million ounces a year as renewables continue to grow.

Meanwhile, we’re seeing that global silver mine supply can’t keep up with rising demand, not because we don’t have enough silver coming out of the ground, but because of declining ore grades & lack of investment in the industry.

Macro Signs Reinforce Precious Metals Allocation

US economic data is sending mixed signals right now. On the one hand, service activity is holding steady, but the job market is showing slower hiring & fewer job openings. This is making investors think interest rates will come down a bit, which historically has been good news for precious metals because it makes non-yielding assets like gold & silver more attractive.

Investors looking to the long term are getting to the point where they’re seeing gold and silver as structural assets – because central banks are still buying gold, industry needs silver, and the global economic landscape is just shifting.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is hovering around $4,435 on the 2H chart , having eased back after a pretty strong recovery from the $4,275 low point. Its recent candlesticks are showing smaller bodies with upper wicks just barely poking under that long standing descending trend line from $4,550, which suggests the price is having a bit of trouble at the resistance level.

The price is still very much within a broad channel that’s been rising, with the trend line support holding out nicely at $4,330. The 38.2% Fib retracement of that last big upswing is pretty much dead on $4,398, which is a pretty good short-term support level.

On the other hand, there is a bunch of resistance layered around $4,480-$4,500.  The trade idea we have is to buy at $4,400, and look to get to $4,500, with a stop-loss below $4,330.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is currently hovering around $76.15 on the 2H chart after failing to break through the $82.60 ceiling. Watch for $75.05 – that’s the lower end of a broad support area & ties in nicely with trendline support & previous price activity. Any dip to $72.50 might look more interesting to buyers, too.

Meanwhile, the RSI has slipped to around the mid-40s, which doesn’t necessarily mean the market’s even beginning to get oversold – just that the momentum appears to be easing back. As long as the price doesn’t drop below this trend support, the uptrend is still intact.

The trade idea is to buy around $75.00, with a target of $82.50. Make sure to get out if the price starts falling off a cliff below $72.40.