Gold (XAUUSD) & Silver Price Forecast: XAU Clears $3,300, XAG Eyes Breakout Above $33.23

Market Overview

Gold (XAU/USD) climbed above $3,300 during Wednesday’s Asian session, marking its highest level in over ten days. The move extends a three-week uptrend, driven by a convergence of economic and geopolitical risk factors.

Growing expectations that the Federal Reserve will cut interest rates—possibly twice before year-end—have put downward pressure on the US Dollar, fueling demand for non-yielding assets like gold.

“We’re seeing increasing odds for a dovish Fed pivot,” said a Hong Kong-based metals analyst. “With real yields easing and the dollar pulling back, gold is positioning for another leg higher.”

Recent data from the U.S. Commerce Department showed retail sales flatlining in April, while consumer price growth slowed to 3.4% year-over-year, down from 3.5% in March. These figures, alongside softening labor market signals, have supported the case for monetary easing, boosting gold’s appeal as a macro hedge.

Silver Hits $33.18 as Industrial Demand, Volatility Drive Flows

Silver (XAG/USD) also advanced, trading at $33.16 after reaching an intraday high of $33.18. The metal continues to benefit from gold’s bullish tailwinds, but its dual role as a store of value and industrial input adds depth to the rally.

Concerns about global manufacturing growth and supply chain fragility have prompted renewed interest in silver, particularly from institutional buyers hedging against economic turbulence.

Fiscal Strain and Trade Policy Uncertainty Stoke Safe-Haven Flows

Market anxiety deepened after Moody’s downgraded the U.S. credit outlook last week, citing deficits projected to exceed 6.2% of GDP over the next two years. Additionally, the Trump administration’s proposed tax package, which analysts estimate could raise U.S. debt by up to $5 trillion, has added to fiscal fragility.

Meanwhile, escalating trade tensions between the U.S. and China over semiconductor exports and industrial policy have reignited fears of supply shocks and growth disruptions.

Combined with persistent global uncertainty, these dynamics are reinforcing safe-haven inflows into both gold and silver. With investors recalibrating for potential Fed cuts and structural risks ahead, the outlook for precious metals remains firmly underpinned.

Short-Term Forecast

Gold eyes $3,347 as bullish momentum holds above $3,298 support; silver tests $33.23 neckline, with breakout or rejection to define next leg.

Gold Prices Forecast: Technical Analysis

Gold is trading at $3,315, holding gains after a sharp rebound from last week’s low near $3,204. Price recently broke above the $3,298 resistance, now acting as support. This move was backed by rising momentum and a clean bounce off the ascending trendline drawn from the May 16 low.

Both the 50-EMA ($3,258) and 200-EMA ($3,250) have turned upward and now sit well below price, reinforcing bullish structure. The next target sits at $3,347, where sellers may look to fade the move.

A failure to break this level could lead to a retest of $3,298. If that floor gives way, $3,271 is next. For now, the path of least resistance remains higher, but the rally is near exhaustion zones.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is hovering near $33.13, approaching the neckline of a potential double top around $33.23—a level that capped price action twice earlier this month. This area is now acting as a critical resistance, reinforced by a visible supply zone. A rejection here could validate the pattern and trigger a pullback toward support at $32.93 or the 50-EMA at $32.60.

However, a clean break and close above $33.23 would invalidate the bearish setup and likely attract momentum buyers targeting $33.47 and $33.68.

The recent rally is supported by higher lows and a rising 50/200 EMA crossover, but the risk of short-term exhaustion looms without a strong breakout. Watch this level closely—it’s a pivot for direction.