Precious Metals Soar: Gold Eyes $3,399, Silver Targets $33.71
The prices of gold and silver surged significantly, driven by a softer US dollar and renewed expectations of interest rate cuts by the Federal Reserve. As investors seek safe-haven assets amid global economic uncertainties, both metals are showing strong bullish momentum.
Gold Price Forecast: Bulls in Full Control
Gold (XAU/USD) has broken critical resistance levels, reaching $3,350 per ounce in the latest trading sessions. The rally was fueled by a cooler-than-expected inflation report, which showed April’s PCE Price Index falling to 2.1% year-over-year, the lowest since early 2021. Core inflation also eased to 2.5%, reinforcing hopes of Fed easing.
Investors are now pricing in nearly a 60% probability of a rate cut by September, with a second reduction possible in December. The Fed’s dovish tone, supported by recent comments from Fed Governor Christopher Waller, added to the upward thrust in gold prices.
On the technical front, gold has cleared the $3,318.90 resistance, forming a bullish breakout from a descending triangle. With the 50-period EMA at $3,304 acting as dynamic support, bulls are targeting the next key resistance at $3,365, with an extended upside towards $3,399.
However, if prices fall below $3,318, a correction toward $3,288 or $3,252 could unfold.
Silver Price Analysis: Watching the $33.71 Mark
Silver (XAG/USD) followed gold’s trajectory and is currently trading around $33.22 per ounce. The metal has gained strength due to increased industrial demand and investors hedging against geopolitical risks.
Technically, silver is forming a wedge pattern, with the price facing resistance at $33.31. A breakout above this level may lead the metal toward $33.49 and eventually $33.71, which is the next key level to watch.
The 50-period EMA at $33.11 has turned into support, while the 200 EMA at $33.08 adds further confirmation of an ongoing bullish trend. Failure to maintain support at $33.13, however, may result in a decline toward $32.97 or $32.77.
Investor Focus: Powell’s Speech and US Economic Data
Markets remain cautious ahead of Federal Reserve Chair Jerome Powell’s upcoming comments and the ISM Manufacturing PMI data. Both events could shift market sentiment dramatically. If Powell maintains a dovish stance, it could further strengthen bullish bets on precious metals.
Short-Term Forecast: Upside Likely if Levels Hold
Gold remains on track to test $3,365 and $3,399, provided current support holds. Silver’s breakout scenario hinges on a strong push above $33.31, potentially targeting $33.71 in the coming sessions.
Given the current environment—easing inflation, a softening dollar, and global uncertainty—precious metals continue to offer strong upside potential for both short-term traders and long-term investors.
📘 Expert Tip:
If gold breaks and sustains above $3,365, the bullish breakout may extend toward $3,450 in the medium term. Similarly, silver holding above $33.31 opens the door for further gains up to $34.00 amid global risk aversion and industrial demand.
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