Gold prices surged to record highs as market expectations for Fed rate cuts continue to grow, while political and geopolitical uncertainty provide further support for the precious metal. Despite a slight pullback, gold remains supported by the Fed’s easing stance, and silver follows with bullish momentum.
Gold (XAUUSD) Price Outlook: Key Support at $3,600 and $3,580
Gold is trading near the $3,620 region, showing resilience despite the overnight pullback from its record highs. Growing expectations for three Federal Reserve rate cuts by the end of the year, fueled by soft U.S. job data, continue to prop up gold. Additionally, geopolitical tensions, including U.S.-Russia relations and uncertainty in Europe, are contributing to the safe-haven demand for gold.
- Resistance Levels: $3,640–$3,645
- Support Levels: $3,600, $3,580, $3,565–$3,560
- Key Technical Indicators: The Relative Strength Index (RSI) remains in overbought territory, suggesting a possible short-term correction. Traders are closely monitoring the $3,580 level as a key support area.
Gold may consolidate before moving higher, but a solid breakout above $3,645 could target the $3,700 mark.
Silver (XAGUSD) Price Forecast: Bullish Momentum Continues
Silver prices are following gold’s lead, driven by safe-haven flows and the prospect of Fed rate cuts. Silver touched $41.27 and remains poised for a breakout above $42.00. Demand for silver is bolstered by its dual role as both an industrial metal and a store of value.
- Resistance Levels: $42.00
- Support Levels: $41.00, $40.55
- Technical Indicators: The bullish price action suggests silver could continue moving toward the $42–$43 region. However, it may encounter resistance around these levels and consolidate before the next leg up.
Market Catalysts and Focus
- U.S. Economic Data: Investors are awaiting the Producer Price Index (PPI) report today, followed by the Consumer Price Index (CPI) on Thursday, which will play a key role in shaping expectations for the Fed’s next move.
- Geopolitical Tensions: Ongoing political unrest and concerns over trade relations are fueling uncertainty and further supporting gold and silver.
- Fed Rate Cuts: With the possibility of three rate cuts before year-end, precious metals are positioned to benefit from a weaker U.S. dollar and declining real yields.
Final Thoughts
Gold and silver remain in bullish uptrends, with key technical support and resistance levels guiding price movements. The combination of rate cut expectations, geopolitical risks, and safe-haven demand continues to drive prices higher. However, traders should remain cautious of potential short-term pullbacks, particularly if the U.S. dollar strengthens ahead of crucial inflation data.
Stay tuned for further updates as the economic landscape evolves with Daily Gold Pakistan.