Gold (XAUUSD) & Silver Price Forecast: Key Resistance at $3,674 and $42 in Focus

Market Overview

Gold advanced for a third straight session in Asian trading, buoyed by soft U.S. labor market data and rising expectations that the Federal Reserve may lower interest rates at its September 16–17 policy meeting.

Traders have begun pricing in as many as three cuts before year-end, pushing the dollar to its weakest level since late July and lifting demand for the non-yielding metal.

The latest Nonfarm Payrolls report showed just 22,000 jobs added in August, alongside a rise in unemployment to 4.3% — the highest in four years. “The data reinforces the case for an imminent shift in Fed policy,” said one New York-based macro strategist, noting that futures markets now assign a 70% probability to a September cut.

Silver Tracks Gold Amid Dollar Weakness

Silver followed gold higher, posting modest gains as safe-haven flows and a softer dollar kept investor interest elevated. The white metal, often viewed as both a monetary hedge and an industrial input, has benefited from expectations of looser U.S. monetary policy while also drawing support from broader uncertainty in global markets.

Analysts note that silver’s dual role makes it sensitive to both investor sentiment and industrial demand.

“With the Fed turning dovish and global growth data slowing, silver is positioned to attract inflows from investors seeking diversification,” said a metals strategist at a Tokyo brokerage.

Geopolitical Risks and Data in Focus

Beyond U.S. labor weakness, political turbulence abroad has reinforced the safe-haven appeal of precious metals. Japan’s Prime Minister Shigeru Ishiba announced his resignation as leader of the Liberal Democratic Party, and in France, Prime Minister Francois Bayrou lost a confidence vote and stepped down.

Both events underscore political fragility in advanced economies, strengthening gold’s attraction as a store of value.

Meanwhile, investors are monitoring potential new U.S. sanctions on Russia and awaiting key inflation reports. The Producer Price Index and Consumer Price Index, due later this week, are expected to shape the Fed’s policy path and the dollar’s trajectory. Any downside surprise could provide additional support for gold and silver into September.

Short-Term Forecast

Gold holds near $3,651 with resistance at $3,659–$3,674, while silver trades around $41.27. A break above $42.00 could spark gains, though support at $41.00 remains crucial.

Gold Prices Forecast: Technical Analysis

Gold is trading near $3,651, holding within a rising channel on the 1-hour chart. The trend remains upward, supported by higher lows and steady buying pressure. Immediate resistance is seen at $3,659, followed by stronger hurdles at $3,674 and $3,691. On the downside, support rests at $3,628 and $3,613, with the 50-EMA reinforcing the short-term floor.

The RSI sits at 66, approaching overbought levels but not yet flashing a reversal signal, which leaves room for further upside.

Price action shows consolidation after a sharp push higher, suggesting momentum is stabilizing before the next move. A break above $3,659 could open the way toward $3,674, while losing $3,628 may trigger a pullback toward $3,613.

To trade gold and silver effectively, it’s crucial to understand What Really Drives Gold, Silver, and Precious Metals Prices: A Comprehensive Guide.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading around $41.27, moving inside a rising channel on the 1-hour chart. Price has struggled to clear resistance near $41.65, which marks the upper boundary of the channel. On the downside, support is building around $41.00, with stronger levels near $40.55. The 50-EMA at $41.15 is acting as short-term support, while the 200-EMA at $40.40 provides a broader safety net.

The RSI at 50 is neutral, suggesting neither buyers nor sellers hold control. Momentum is flattening, which could lead to consolidation before the next move.

If silver holds above $41.00, buyers may attempt another push toward $42.00. A break below $41.00, however, risks a deeper move toward $40.55.