Market Overview
Gold prices rose sharply during the Asian session on Wednesday, surpassing $3,340 and approaching a weekly high, as investors flocked to safe-haven assets. The rally comes amid renewed global uncertainty, including escalating military activity in Eastern Europe and trade disputes between major economies. Meanwhile, silver prices held steady near $36.50, supported by market caution and expectations of a more accommodative US monetary policy.
“Market participants are positioning themselves based on expectations of a Fed rate cut, which continues to support demand for non-yielding assets like gold,” said a senior commodity strategist at ANZ Research. Futures markets are pricing in a 66% chance of a rate cut by September, despite last week’s stronger-than-expected US jobs report. Tariff policy and US-China trade uncertainty are boosting safe-haven demand.
Tuesday’s federal appeals court ruling, allowing the continuation of Trump-era tariffs—known as “Deregistration Day” duties—bolstered gold’s momentum, injecting fresh uncertainty into the global trade environment. While Washington and Beijing agreed to implement the Geneva Consensus framework, disagreements over rare earths and base metals remain unresolved, casting a shadow over trade optimism. Silver prices held steady as traders awaited U.S. CPI and PPI reports.
Silver prices followed gold’s path, albeit with slight fluctuations. The metal briefly dipped to $36.48 during intraday trading but held steady. Analysts suggest that silver’s dual role as a precious and industrial metal could see strong support if risk sentiment stabilizes and demand from manufacturing sectors recovers.
Market focus now turns to US inflation data, which is likely to shape the next phase of price action. The Consumer Price Index (CPI) report is due later Wednesday, followed by the Producer Price Index (PPI) on Thursday. Any signs of easing inflation could strengthen the Federal Reserve’s stance on monetary policy and push gold to new record highs.
Short-term forecasts
Gold is looking to break above $3,349 amid bets on interest rate cuts and increased safe-haven demand, while silver is holding near $36.31, with bullish momentum continuing.
Gold Price Forecast: Technical Analysis
Gold is rising after bouncing off a major uptrend line and reclaiming the $200 EMA ($3,321.48) and $50 EMA ($3,334.09). The price is now hovering around $3,339.83, just below the resistance level at $3,348.95.
Although no clear reversal candle has formed, the recent higher lows indicate that buyers are regaining momentum. If the bulls break above $3,349, a retest of $3,375 could follow. On the other hand, $3,321 remains a key support level; a break below it could lead to a return to $3,302.
