Gold and silver prices continue their bullish momentum as soft U.S. labor data boosts expectations of Federal Reserve rate cuts. The next major resistance levels for both metals are set at $3,674 for gold and $42 for silver.
Gold (XAU/USD) Outlook: Uptrend Persists Amid Fed Rate Cut Bets
Gold prices surged, reaching $3,651, supported by weak U.S. job data and growing expectations for a Fed rate cut. The August Nonfarm Payrolls report, which showed only 22,000 new jobs, strengthened the case for monetary easing. Markets are now pricing in up to three rate cuts before the end of the year, putting downward pressure on the U.S. Dollar and bolstering the appeal of gold as a safe-haven asset.
Key Resistance Levels for Gold
Gold is currently trading within a rising channel and faces immediate resistance at $3,659, with the next hurdles at $3,674 and $3,691. Should the price break above these levels, gold may see further gains. Support lies at $3,628 and $3,613, with the 50-EMA offering a cushion for a potential pullback.
Silver (XAG/USD) Outlook: Bullish Momentum Follows Gold
Silver continues to trade near $41.27, closely following gold’s rise. The metal remains supported by investor sentiment amid a dovish Fed outlook and global uncertainty. Silver has been struggling to clear resistance at $41.65, which marks the upper boundary of its current channel. However, a break above $42 could trigger additional buying interest, with support at $41.00 and the 50-EMA providing short-term protection.
Geopolitical and Market Risks Drive Safe-Haven Demand
Political turmoil in advanced economies, including Japan and France, has reinforced the appeal of gold and silver as stores of value. Furthermore, upcoming inflation reports like the Producer Price Index and Consumer Price Index will shape the Fed’s decision-making and could influence the future direction of both precious metals.
In Summary:
- Gold: Focus remains on resistance at $3,659–$3,674. A break above these levels could push gold towards $3,691. Support at $3,628 and $3,613 remains key.
- Silver: Resistance sits at $41.65, with a break above $42 opening the path for higher prices. Support holds at $41.00, with broader safety near $40.55.
With continued strength in both gold and silver driven by Fed rate cut expectations, geopolitical uncertainty, and safe-haven demand, traders should watch for a break above key resistance levels for the next leg higher.
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