Gold (XAUUSD) & Silver Price Forecast: XAU Eyes $3,349 Breakout, XAG Holds $36.31

Market Overview

Gold (XAU/USD) advanced sharply during Wednesday’s Asian session, breaching the $3,340 level and approaching its weekly high as investors shifted capital into safe-haven assets. The uptick comes amid renewed global uncertainty, including heightened military activity in Eastern Europe and trade-related friction between major economies.

At the same time, Silver (XAG/USD) hovered near $36.50, supported by cautious sentiment and expectations of a more accommodative U.S. monetary policy.

“Market participants are positioning around anticipated Federal Reserve rate cuts, which continue to underpin demand for non-yielding assets like gold,” said a senior commodities strategist at ANZ Research. Futures markets are pricing in a 66% probability of a rate cut by September, despite last week’s stronger-than-expected U.S. jobs report.

Tariff Policy and US-China Trade Uncertainty Reinforce Safe-Haven Demand

Adding to gold’s momentum was Tuesday’s federal appeals court decision allowing the continuation of Trump-era tariffs—dubbed “Liberation Day” duties—which introduced fresh uncertainty into the global trade environment.

While Washington and Beijing have agreed to implement the Geneva Consensus framework, disputes over rare earths and critical minerals remain unresolved, casting a shadow over the optimism surrounding trade.

Silver Holds Steady as Traders Await U.S. CPI and PPI Reports

Silver prices mirrored gold’s trajectory, albeit with slightly more volatility. The metal dipped briefly to $36.48 in intraday trading but remained resilient.

Analysts suggest that silver’s dual role as both a precious and industrial metal could see more substantial tailwinds if risk sentiment stabilizes and demand from manufacturing sectors rebounds.

Market focus now turns to U.S. inflation data, which will likely shape the next leg of price action. The Consumer Price Index (CPI) report is scheduled for release later Wednesday, followed by Thursday’s Producer Price Index (PPI). Any signs of easing inflation could reinforce the case for the Fed to ease and push gold toward new highs.

Short-Term Forecast

Gold eyes a breakout above $3,349 amid bets on a rate cut and safe-haven demand, while silver consolidates near $36.31, with bullish momentum still intact.

Gold Prices Forecast: Technical Analysis

Gold ($XAUUSD) is pushing higher after bouncing from a key ascending trendline and reclaiming both the 200 EMA ($3,321.48) and the 50 EMA ($3,334.09). The price is now hovering around $3,339.83, just below the resistance at $3,348.95.

Although no clear reversal candle has formed, recent higher lows indicate that buyers are regaining traction. If bulls break above $3,349, a retest of $3,375 could follow. On the other hand, $3,321 remains pivotal support; losing that, we could revisit $3,302.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver ($XAGUSD) is consolidating near the top of its ascending channel, with price currently holding just above $36.31, right where the short-term support and lower boundary of this tight range intersect.

The 50 EMA at $36.07 continues to provide dynamic support, while the 200 EMA ($34.51) remains well below, confirming the broader bullish structure. Despite the recent pause, there’s no bearish reversal candle—no shooting star, no engulfing—just steady indecision.

If bulls push above $36.88, the next level to watch is $37.46. A break below $36.31, however, could trigger a slide toward $35.81. The uptrend’s intact for now, but the next candle or two will likely define the direction.