Gold (XAUUSD) & Silver Price Forecast: XAU Eyes $3,346, XAG Awaits Breakout at $33.70

Market Overview

Gold (XAU/USD) advanced to $3,328 in Friday’s Asian session, marking its highest level in over two weeks and setting up its strongest weekly performance since mid-April.

The gains came despite mixed U.S. economic indicators—jobless claims eased to 227,000 and flash PMIs rose modestly—signaling resilient domestic activity. However, those figures failed to lift the U.S. Dollar Index, which remains under pressure due to persistent fiscal concerns.

The House of Representatives recently approved a tax and spending package projected to increase the national debt by $3.8 trillion over the next decade. As the greenback falters, capital is moving into traditional safe havens, driving gold higher.

Silver Tracks Gold, Holding Above $33 as Risk Appetite Falters

Silver (XAG/USD) followed gold’s lead, trading at $33.02 by midday Friday. While typically more volatile than gold, silver found sustained buying interest amid rising market anxiety.

The gold-to-silver ratio narrowed slightly, reflecting stronger relative demand for silver in the short term.

Traders are weighing the potential implications of a more dovish Federal Reserve in 2025. Swaps markets now price in a 60% chance of at least one rate cut by March, a shift from 45% a week ago.

With real yields declining and inflation expectations steady, both gold and silver are gaining favor among asset managers seeking inflation-hedged exposure.

Eyes on Fed and Fiscal Policy as Metals Remain in Focus

Precious metals may continue to see upside if incoming U.S. housing data disappoints or if key FOMC officials hint at a policy pivot. Investors are also monitoring U.S. fiscal developments and rising geopolitical tensions, which have added an undercurrent of risk aversion to global markets.

“Markets aren’t reacting to one headline—it’s the accumulation of systemic risks and softening policy stances that’s pushing capital into metals,” noted a commodities analyst at Rabobank. Gold remains supported above $3,300, with near-term resistance at $3,346 and $3,379.

Short-Term Forecast

Gold eyes $3,346 as momentum builds within a rising channel; silver holds firm above $33.02, but a break above $33.70 is needed to confirm fresh upside in both metals.

Gold Prices Forecast: Technical Analysis

Gold is trading at $3,328 after bouncing off trendline support near $3,310, maintaining its upward trajectory within a rising channel on the 2-hour chart. This latest leg higher comes after price respected both the 50-EMA ($3,285) and 200-EMA ($3,269), reinforcing bullish structure. A strong candle has just printed above the midline of the channel, hinting at renewed momentum.

If the move holds, the next resistance to watch is $3,346, followed by $3,379. The bullish continuation looks more convincing now that gold has also cleared the prior high at $3,310.

For traders, a pullback to the $3,310–$3,285 zone could offer a better entry, especially if supported by a bullish candlestick setup like an engulfing or hammer. As long as price stays inside this channel, the uptrend remains intact.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is holding above $33.02 after bouncing from trendline support and the 50-EMA ($32.97), a confluence that has acted as a pivot zone in recent sessions. The price is now moving within a rising wedge, with higher lows forming since mid-May and a clear push off $32.62 earlier this week.

The structure shows continued buyer interest, but the consolidation beneath $33.70 suggests overhead pressure still exists. A break above $33.70 could open the door to $34.04 and $34.42.

On the downside, if price slips below the $33.02 support, a retest of the 200-EMA at $32.71 could follow. For now, the bias leans bullish, but momentum needs to hold for this setup to develop further.