Gold (XAUUSD) & Silver Price Forecast: Pullback Fades—Are Bulls Regaining Control?

Key Points:

Market Overview

Gold (XAU/USD) managed to gain some traction and edged higher around the 4,850 level. However, the reason for its renewed strength can be attributed to a pause in the US dollar's recent recovery, which encouraged some buying interest in the precious metal. Moreover, easing geopolitical and trade tensions could limit gains in gold.

Meanwhile, Silver is trading at 83.18, showing strong gains of 4.98% as investors turn to the metal amid a pause in the US dollar's recovery.

Warsh Nomination and Easing Global Tensions Weigh on Gold

As we mentioned, President Trump has chosen Kevin Warsh to become the next head of the US Federal Reserve. This decision removed a main source of uncertainty in the market, which is basically bad for gold.

Kevin Warsh is known for being strict on inflation, which means interest rates may stay high for longer. When interest rates are high, Gold becomes less attractive.

At the same time, the global tensions are easing, which is also bad for Gold. It is worth mentioning that the US and India have agreed on a trade deal, making investors more confident about the economy.

Moreover, the US and Iran are also expected to restart nuclear talks, reducing fears of conflict. As a result, Gold prices are struggling to move higher.

US Dollar Recovery and Economic Data Keep Gold Gains in Check

On the other hand, the latest US economic data is helping the US Dollar recover, which can weigh on Gold. On Monday, the US ISM Manufacturing PMI showed that factory activity grew for the first time in a year, rising to 52.6 in January from 47.9 in December. This stronger-than-expected growth supports the US Dollar, making Gold less attractive because a stronger Dollar usually pushes Gold prices down.

Despite this, the overall outlook for Gold remains cautious. Traders are now waiting for more US economic updates, including the JOLTS Job Openings report on Tuesday, followed by the ADP private employment numbers and ISM Services PMI on Wednesday.

Gold Price Forecast: XAU Rebounds From $4,500 — Is the Pullback Over?

Gold – Chart

Gold (XAU/USD) is trading near $4,870, rebounding after a sharp sell-off from the $5,550 peak. The 2-hour chart shows a strong bullish recovery candle sequence following a long lower wick near $4,500, signaling dip buying. Price has reclaimed the 200-EMA and is now challenging the 50-EMA around $4,980, a key near-term resistance.

The broader structure still reflects an ascending trend, with this move resembling a corrective pullback rather than trend failure. RSI has bounced from oversold levels near 30 to around 45, showing improving momentum but not yet strength. Immediate support sits at $4,750, while resistance remains at $5,000–$5,050.

Trade idea: Buy pullbacks above $4,750, targeting $5,050, invalid below $4,600.

Silver Price Forecast: XAGStabilizes Near $85 After Deep Fibonacci Pullback

Silver – Chart

Silver (XAG/USD) is trading around $84.9, attempting to stabilize after a sharp drop from the $120 peak. On the 2-hour chart, price plunged through the rising trendline and the 50-EMA, confirming a clear short-term trend break. The sell-off found support near the 0.236 Fibonacci level at $83.2, where long lower wicks suggest buyers are defending this zone.

Price is still below the 200-EMA near $96.5, keeping the broader bias cautious. RSI rebounded from oversold levels below 30 to near 40, signaling slowing downside momentum but not a reversal. Immediate resistance stands at $90.5, then $96.3, while support remains at $83 and $71.

Trade idea: Buy above $83 for a rebound toward $90, invalid below $71.

Source: FX Empire