Gold (XAUUSD) & Silver Price Forecast: Safe-Haven Demand Lifts Metals – Buy the Dip or Stand Aside?

Market Overview

Gold (XAU/USD) extended its strong bullish momentum, breaking above the $5,050 level and hitting an intraday high near $5,079. However, the bullish rally was supported by strong safe-haven demand in the market.

The geopolitical tensions and uncertainty over the future policy direction of the US Federal Reserve were seen as major factors that put pressure on the risk sentiment and increase demand for safe-haven asses like Gold.

Moving on, traders are waiting for key US data, including the ADP Employment Change and Consumer Confidence reports. Meanwhile, Silver is trading at $107.60, up 3.59%, following strong investor interest in safe-haven metals.

Gold Benefits from Rising Global Uncertainty

The global market sentiment has been flashing red as US President Donald Trump threatened to impose 100% tariffs on Canadian goods if Canada proceeds with a trade deal with China. This triggered strong fears of a renewed trade war, boosting demand for gold.

At the same time, the ongoing worries about the US straining relations with long-standing partners, including Europe and Canada, have made markets more cautious. As a result, investors continue to favor gold as a safe-haven asset.

Gold Gains from Uncertainty Over Fed’s Next Chair

Another factor boosting gold is uncertainty over the Federal Reserve’s future. Markets are closely watching President Trump’s upcoming choice for the next Fed Chair, after he confirmed that interviews with candidates are complete.

Therefore, a more dovish pick will likely raise expectations for further interest-rate cuts later this year. This will make gold more attractive as a non-yielding safe-haven asset.

Gold Eyes Fed Decision This Week

Looking ahead, all eyes are on the Federal Reserve’s interest rate decision, which is due on Wednesday. Notably, the central bank is expected to keep rates steady between 3.50% and 3.75%. Traders will pay close attention to Fed Chair Jerome Powell’s comments for hints about future policy moves.

If Powell sounds hawkish, the US dollar could strengthen, limiting gold’s gains in the short term. On the other hand, any sign of a more flexible policy could push gold higher.

Gold Prices Forecast: XAU Consolidates Above $5,060 as Bullish Structure Stays Intact

Gold is trading around $5,085 after bouncing off the $5,030 to $5,005 support area on the 1-hour chart. Recent candles have long lower wicks and steady green closes, which shows buyers are stepping in on dips. The price is still above the rising trendline and inside an upward channel. Fibonacci retracement from $4,899 to $5,111 points to $5,061 and $5,031 as important support levels, and both have held.

The 50-EMA is moving higher and remains above the trendline, supporting the current structure. The RSI has moved back toward 50 from oversold, hinting that momentum is stabilizing. Resistance is found near $5,110 and $5,142.

Trade idea: Consider buying around $5,060, aiming for a target of $5,140, with a stop set below $5,030.

Silver Price Forecast: XAG Holds $109 After Volatile Pullback as Uptrend Regains Balance

Silver is trading around $109.80 after dropping from $117.70 and quickly bouncing back from $104.00 on the 2-hour chart. The recent selloff created a long bearish candle, but the next candles are smaller and closing steadily, which suggests buyers are stepping in.

The price is still above the rising trendline and within a larger upward channel. Fibonacci retracement from $90.35 to $117.72 highlights $107.26 and $104.04 as important support levels, and both have held.

The 50-EMA is still moving up, and the RSI has recovered to about 50 after briefly dipping into oversold territory, showing momentum is now neutral. Resistance is at $111.25 and then $114.30.

Trade idea: Consider buying around $107.30, aiming for a target of $114.00, with a stop set below $104.00.