Gold prices have surged during early Asian trading on Wednesday, extending gains for the fifth time in six sessions. Spot gold (XAU/USD) hit a new record high near $3,311 per ounce, fueled by heightened global uncertainty, rising expectations of aggressive Federal Reserve rate cuts in 2025, and a weakening U.S. dollar. Silver also followed suit, trading around $32.49, continuing its upward trajectory alongside gold. Both metals have gained favor as safe-haven assets amid turbulent market conditions and erratic tariff policies from Washington and Beijing.
“Markets are bracing for further disruptions as trade tensions escalate unpredictably. Gold and silver are natural beneficiaries in such a climate,” noted a Hong Kong-based precious metals strategist.
Tariff Volatility Fuels Flight to Safety: The latest rally in gold is largely driven by the abrupt shifts in U.S. trade policy. On Monday, President Trump delayed certain tariffs for 90 days, sparing electronics like smartphones and computers. However, just days later, he reversed course, reaffirming a 145% duty on select Chinese imports while threatening additional tariffs on pharmaceuticals and semiconductors.
In response, China raised its duties on U.S. goods to 125%. The rapid policy reversals and lack of clarity have fueled fears of a prolonged trade conflict, driving investors toward assets less vulnerable to policy risk, such as gold and silver.
Rate Cut Bets and Dollar Weakness Underpin Bullion Demand: Markets are now pricing in 100 basis points of Fed rate cuts in 2025, contributing to a sharp decline in the U.S. Dollar Index, which has hit its lowest level since April 2022. A weaker dollar has made gold more attractive to non-dollar holders, adding further fuel to the rally.
Even stronger-than-expected Chinese GDP growth figures—Q1 GDP rose by 5.4% year-over-year—were overshadowed by global trade anxieties. Until the Federal Reserve clarifies its policy trajectory, gold and silver are likely to remain in demand due to safe-haven flows.
Short-Term Forecast: Both gold and silver are in firm uptrends, supported by safe-haven demand, a weak U.S. dollar, and bullish technical breakouts. Short-term targets include $3,350 for gold and $34.60 for silver.
Gold Price Forecast: Technical Analysis
Gold (XAU/USD) continues to surge, breaking out of its consolidation range and now trading above $3,310, a fresh all-time high. The breakout from the $3,214–$3,245 congestion zone signals strong bullish momentum, underpinned by robust demand for safe-haven assets and a weakening U.S. dollar.
Immediate resistance is at $3,332, followed by $3,364.
Support levels: First support is at $3,298, with stronger support at $3,269 if prices retrace.
As long as gold holds above $3,298, bulls remain in control. A daily close above $3,310 may drive further upside toward the $3,350–$3,375 zone.
Silver Price Forecast: Technical Outlook
Silver (XAG/USD) continues its bullish advance, now trading around $32.94, after breaking above the $32.60 resistance, confirming a rising wedge breakout. Momentum is reinforced by both the 50 EMA ($31.92) and 200 EMA ($32.29) trending upward, supporting a broader bullish structure.
Resistance levels: $33.48, followed by $34.08 and $34.58.
Support levels: Immediate support at $32.60, with further support at $31.82. The ascending trendline from the April 5 lows continues to guide price action.
As long as silver remains above $32.60, bullish momentum is favored. A sustained break above $33.48 could trigger a test of multi-month highs near $34.60.
Conclusion
Gold and silver prices remain in strong uptrends, fueled by geopolitical uncertainty, weak U.S. dollar, and market expectations of future Fed rate cuts. Both metals are likely to continue benefiting from safe-haven demand and could see further gains in the short term, with targets of $3,350 for gold and $34.60 for silver.
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