Gold (XAU/USD) and Silver (XAG/USD) are trading cautiously as investors look ahead to fresh signals from the U.S. Federal Reserve. The yellow metal is consolidating within a tight range, while silver corrects toward key support levels. Meanwhile, the U.S. Dollar Index shows signs of a rebound, though it remains capped below major resistance.
Gold Price Analysis (XAU/USD)
Gold prices slipped toward $3,300 and continue to trade sideways within the broader $3,250–$3,450 range. Market participants are awaiting the release of the Fed’s meeting minutes and Jerome Powell’s speech at Jackson Hole for clearer policy guidance.
- Strong U.S. retail sales and sticky inflation data pushed Treasury yields higher, weighing on gold’s near-term upside momentum.
- Optimism about progress in the Russia-Ukraine peace talks has also reduced safe-haven demand.
- Despite these short-term pressures, dips are still being seen as buying opportunities, with long-term outlook favoring upside potential.
Technical View:
- Daily Chart: Gold remains in consolidation inside an ascending triangle. A break above $3,450 would clear the path toward $3,500, while a drop below $3,250 could open losses toward $3,175.
- 4-Hour Chart: Price action is trapped between $3,250–$3,450. A breakout above $3,500 may trigger fresh bullish momentum targeting new highs, while weakness below $3,250 could extend losses toward $3,150.
Silver Price Analysis (XAG/USD)
Silver prices are correcting lower after facing resistance above $38.60, with the metal now approaching its 50-day SMA near $37.20.
- A break below the $37.20–$35.00 zone could deepen the correction.
- However, $35 remains a crucial support level that previously held before a strong breakout, making it a potential entry zone for buyers.
- Long-term projections still suggest silver could rally toward $43 in 2025.
Technical View:
- Daily Chart: Silver is testing support at the 50-day SMA. Failure to hold may drag it to $35, while a rebound above $38.60 would re-establish bullish momentum.
- 4-Hour Chart: Consolidation continues below resistance at $38.60. A break lower may retest $35–34.50, which could trigger a strong bounce.
U.S. Dollar Index (DXY) Technical Outlook
The U.S. Dollar Index is consolidating just under the 100.50 resistance, after rebounding from support.
- Daily Chart: The index remains weak below 100.50, with a bearish trend intact. A move above 102 would shift momentum in favor of the dollar.
- 4-Hour Chart: The DXY is holding at the lower end of an ascending broadening wedge. A rebound toward 99.20 is possible, but as long as it remains under 102, the bias stays bearish.
Conclusion
Gold and silver remain range-bound as traders await clarity from the Federal Reserve. While short-term corrections are likely, the broader trend for both metals still leans bullish, supported by potential Fed easing later this year. Dollar strength may cause near-term pressure, but dips in gold and silver could continue to attract long-term buyers.
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