Gold (XAUUSD) & Silver Price Forecast: Pullback or Pause? Charts Point to the Next Big Move

Market Overview

During the early European trading session, Gold (XAU/USD) extended its nine-day winning streak and surprisingly crossed fresh all-time highs of $ 5,595. As of now, it is trading near 5,583 level. However, the precious metal continues to attract strong safe-haven demand as long-lasting concerns over the Federal Reserve’s independence put pressure on the US dollar and contributed to the Gold gains. Furthermore, the ongoing global economic and geopolitical uncertainties are further supporting gold prices.

Despite positive sentiment in the equity markets, gold continued to gain traction and remained strongly supported throughout the day. Even though Fed Chair Jerome Powell made hawkish remarks, Gold’s price didn’t drop. Its gains remain steady because the market had already expected the Fed to keep interest rates unchanged.

Meanwhile, Silver is also seeing strong gains, trading at $119.13 with a 1.96% rise, as safe-haven demand grows amid global uncertainties and US dollar weakness.

Geopolitical Tensions and Dollar Weakness Push Gold Higher

On the geopolitical front, concerns about US tariffs have returned after Germany, the Eurozone’s largest economy, lowered its growth forecasts for this year and next. Meanwhile, the tension is also rising in the Middle East, as US President Donald Trump warned Iran to come to the table on nuclear weapons, or face stronger attacks. Iran fired back, threatening the US, Israel, and their allies.

Meanwhile, Russia keeps hitting Ukrainian cities, with a recent drone strike on a passenger train killing five people. All this uncertainty, along with some selling of the US dollar, is keeping Gold in demand.

Fed’s Steady Rates and Political Concerns Give Gold a Boost

On the US front, the Federal Reserve kept interest rates unchanged after its two-day meeting, as most expected. Two Fed officials, Stephen Miran and Christopher Waller, wanted a small cut instead. Fed Chair Jerome Powell said inflation is still higher than the 2% target, but markets barely reacted. Meanwhile, worries are growing that the Fed may not be fully independent, with a DOJ investigation into Powell and efforts to remove Governor Lisa Cook raising concerns about political pressure.

For now, traders expect rates to stay steady through this quarter and possibly until Powell’s term ends in May, though two cuts are priced in for 2026. This outlook is keeping the US Dollar from gaining much and giving Gold a boost, as investors favor the safe-haven metal. All eyes are now on Thursday’s jobless claims data for fresh market movement.

Gold Prices Forecast: XAU Holds Above $5,500: Fibonacci Support Keeps Bullish Structure Intact

Gold is trading near $5,535, pulling back from recent highs but still showing a bullish pattern on the 2-hour chart. Buyers are stepping in above the $5,460 to $5,420 area, which matches the 38.2% and 50% Fibonacci retracement of the latest move. The candlesticks have small bodies and lower wicks, suggesting buyers are active on dips.

The overall trend is supported by a rising trendline from the $5,240 level. The RSI has eased from high levels but is still above 60, showing momentum is strong. If gold moves above $5,600, it could target $5,680 to $5,710.

Trade idea: Consider buying on dips near $5,460, with a target of $5,680 and a stop below $5,400.

Silver Price Forecast: XAG Consolidates Near $117: Trendline Support Keeps Bullish Bias Alive

Silver is trading around $117.20, pulling back after a strong rally but staying above a rising trendline that has supported prices since breaking out from the $102 to $105 area. Recent candles with small bodies and upper wicks near $118 to $120 show some hesitation, not a reversal. The chart still shows higher highs and higher lows, with trend support near $115.60.

If silver falls below that, the next support is between $112.80 and $111.30, an area linked to previous consolidation. The RSI is around 60, which means momentum is cooling but still positive. A close above $118.50 could shift focus to the $120 to $123 resistance zone.

Trade idea: Consider buying on dips near $115.60, aiming for a target of $120.50 with a stop below $112.80.