Gold (XAUUSD) & Silver Price Forecast: Will $4,750 Gold and $100 Silver Break Out Next?

Market Overview

During the early European trading session, the Gold (XAU/USD) maintained its upward trend and remained well bid near a record high above $4,700, but gains were limited by a slightly stronger US dollar and reduced expectations for further Fed rate cuts this year.

Despite this, ongoing geopolitical tensions and fears of a global trade war continued to support gold.

Meanwhile, Silver (XAG/USD) is trading at 94.46, up 0.15, supported by ongoing safe-haven demand amid geopolitical tensions and a cautious US economic outlook.

US Dollar Strength and Upcoming Economic Data

On the US front, the broad-based US dollar has regained some strength after a small overnight drop. This move comes as traders reduce their expectations for multiple interest rate cuts by the Federal Reserve. Meanwhile, the dollar also found some support after former President Trump said he wants Kevin Hassett to stay in his current role, suggesting someone new might replace outgoing Fed Chair Jerome Powell.

Looking ahead, investors are waiting for key US data including the US Personal Consumption Expenditure Price Index, the Fed’s favorite inflation measure, along with the final US Q3 GDP report.

Geopolitical Tensions and Safe-Haven Gold Support

Apart from this, civil unrest in Iran has eased, lowering the chances of a US intervention. This reduces pressure on global markets and acts as a headwind for commodities like Gold.

However, geopolitical tensions remain high. The Russia-Ukraine war continues, with recent drone and missile attacks causing power outages in Ukraine amid freezing temperatures. Meanwhile, concerns about a US-EU trade war are rising after Trump threatened extra tariffs on goods from eight European countries over Greenland. These all are supporting safe-haven gold to stay above $4,700 level.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $4718 at the moment; it’s still climbing higher having finally broken above a key spot where the price had been stuck, which has just added to the encouraging trend . the upward channel its locked into is being supported by a series of higher lows and the short term moving averages just keep on creeping up.

The breakout candle is looking pretty bullish and all this suggests we’re seeing renewed buying interest – the upside targets are now creeping up to $4756 and even $4808. A look at the RSI figure and its sitting above 60 which is a decent sign of momentum but its not over the top its still got some room to run yet. while the price is above $4680 the outlook is still looking pretty positive but a drop below that and the next stop would be a retest of $4644.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at around $94.22, still looking bullish as it stays within a rising trend channel. The price is being supported by higher lows and moving averages that are heading upwards, with the immediate catch to this is resistance at $94.71 and targets for a gain are $97.83 and $100.60.

The relative strength index is just below 60 which is telling us that the momentum is moderate and not so strong to be considered overbought yet. A break higher above $94.71 could be the start of some serious increases in the price moving up towards the $100 mark. Looking down at the chart though we can see that support levels are at $89.95 and $86.98.