Gold (XAUUSD) & Silver Price Forecast: Safe-Haven Demand Rises Amid Mixed U.S. Data

Market Overview

Gold prices (XAU/USD) remained stable early Tuesday, hovering near a two-week high at $3,387. Despite trimming some intraday gains, the precious metal held firm for the second straight session.

Investors appear cautious ahead of the Federal Reserve’s policy announcement, while lingering global risks continue to support demand for safe-haven assets.

“Gold is holding firm as a hedge against uncertainty—both economic and geopolitical,” said a commodities strategist at ING.

The broader macro backdrop remains mixed. Although U.S. economic data has reduced immediate recession fears, traders are still pricing in volatility around the Fed’s tone on interest rates.

Silver Trades at $33.10, Tracks Gold’s Strength

Silver (XAG/USD) is also benefitting from the risk-off tone, trading at $33.10 after reaching a session high of $33.12. The metal continues to mirror gold’s price trajectory, supported by technical strength and safe-haven flows.

Both metals are responding to a confluence of forces: easing fears of an imminent U.S. recession, persistent geopolitical tensions, and uncertainty around central bank policy.

ISM and Jobs Data Ease Recession Fears, but Fed Still in Focus

Economic data from the U.S. has shown improvement. The Institute for Supply Management (ISM) reported its services PMI rose to 51.6 in April, up from 50.8 in March, indicating steady expansion. Meanwhile, last week’s employment report revealed stronger-than-expected job growth, adding to optimism around the U.S. economy.

Still, the market remains cautious. “While the data points are supportive of growth, uncertainty around inflation and the Fed’s next steps keeps investors defensive,” said a senior economist at Capital Economics.

FOMC Meeting in Spotlight as Market Watches for Policy Clues

Attention now shifts to the Federal Open Market Committee (FOMC) meeting. While no rate change is expected, investors will scrutinize Fed Chair Jerome Powell’s tone for signals on potential rate cuts later this year.

With geopolitical instability and uneven economic signals in play, gold and silver may continue to benefit from safe-haven inflows in the near term.

Short-Term Forecast

Gold hovers near $3,387 as markets await Fed signals; a breakout above $3,389 may target $3,442. Silver eyes $33.20 resistance, with support at $32.77 holding firm for now.

Gold Prices Forecast: Technical Analysis

Gold is trading around $3,362 after piercing above a major resistance zone near $3,351, which had previously acted as a ceiling throughout late April. Price action has rallied sharply off the $3,202 low, reclaiming the 50-period EMA at $3,290 along the way, and is now testing a longer-term descending trendline.

This level—just under $3,390—has capped bullish momentum since mid-April and could once again serve as a decision point. A clean break and daily close above $3,389 would open the door to $3,442 and potentially $3,501.

Until then, this trendline remains the last technical barrier before gold can challenge cycle highs. On the downside, the first area to watch is $3,351 for support. If that breaks, $3,304 and the 50 EMA may come back into focus.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is currently trading near $32.98 on the 2-hour chart, right below the descending trendline resistance drawn from late April highs. After rebounding from support around $32.00 and reclaiming the 50-period EMA at $32.53, price surged through a consolidation zone near $32.77—now acting as a soft support floor.

The recent rally has brought silver into a tight wedge, with upward momentum being tested by overhead resistance near $33.20.

A confirmed breakout above $33.20 could open the path toward $33.39 and $33.70. However, if the rally stalls here, a pullback toward the $32.77–$32.53 support area remains likely.