Gold (XAU/USD) & Silver (XAG/USD) Price Forecast:

Market Overview: Gold and Silver Consolidate Amid Fed Rate Cut Speculation
Gold prices (XAU/USD) held steady near $3,321.61 per ounce in Tuesday’s Asian session, consolidating as traders weighed mixed signals from the Federal Reserve, U.S. trade policy, and geopolitical risks.

The U.S. dollar index (DXY) fell 0.3% to a one-month low, boosting gold’s appeal for foreign buyers.

Markets now price in two 25-basis-point Fed rate cuts in 2024 following softer inflation data.

Former President Trump delayed 50% EU tariffs until July 9, easing short-term trade tensions but leaving uncertainty.

Silver (XAG/USD) followed a similar trend, hovering near $33.50 per ounce as traders assessed U.S. fiscal policy risks and Fed rate expectations.

“Gold is caught between a weaker dollar, potential Fed easing, and geopolitical risks,” said Kelvin Wong, Senior Market Analyst at OANDA Asia Pacific.

Key Drivers for Gold and Silver Prices
1. Fed Rate Cut Expectations & U.S. Economic Data
Traders await Fed Chair Powell’s comments and key U.S. data:

Durable Goods Orders & Consumer Confidence (Tuesday)

FOMC Meeting Minutes (Wednesday)

Core PCE Inflation (Friday)

Softer inflation supports gold’s bullish case, but a hawkish Fed shift could limit gains.

2. U.S. Dollar Weakness Supports Precious Metals
A declining dollar makes gold and silver cheaper for foreign investors.

Long-term U.S. deficit concerns ($4 trillion projected over 10 years) could further weaken the dollar, benefiting XAU/USD and XAG/USD.

3. Geopolitical Risks & Safe-Haven Demand
Ongoing Middle East tensions and U.S.-China trade risks underpin gold’s safe-haven appeal.

Silver benefits from industrial demand amid green energy and EV sector growth.

Gold (XAU/USD) Technical Analysis: Will $3,340 Breakout Hold?
Current Price: $3,321.61 (testing 50-period EMA support at $3,319).

Key Resistance: $3,340 (recent high). A breakout could signal a bullish continuation.

Support Levels:

$3,309 (short-term floor)

$3,277 (stronger demand zone)

Outlook: Bullish above $3,340, but a drop below $3,309 may trigger a deeper correction.

Silver (XAG/USD) Technical Outlook: Can $33.22 Support Hold?
Current Price: $33.50, testing broken trendline support at $33.28.

Key Resistance: $33.70 and $34.00 (psychological barrier).

Support Levels:

$33.01 (immediate support)