Gold and Silver Price Outlook: XAU Expects to Breakout at $3,349 as Fed Cut Bets Rise

The price of gold is rapidly rising, with spot XAU/USD trading just below $3,340 as investors prepare for potential Federal Reserve rate cuts. Futures markets predict a 66 percent possibility of a rate cut by September, which bodes well for gold because it is a stable asset that does not pay interest. Rising geopolitical concerns, such as tensions in Eastern Europe and unknown global trade patterns, are making the metal more enticing.

According to the CME FedWatch Tool, investors are increasingly pricing in monetary easing, which typically boosts gold prices. Technical analysts believe that if the yellow metal breaks past the important resistance level of $3,349, it could rise to $3,375 or higher in the short term.

Silver holds steady around $36.50. Thanks to Strong Industry

Even though it has decreased somewhat during the day, silver is stable at $36.50. Silver has an advantage over gold in that it can function as both a money and an industrial asset. This is because markets are attempting to strike a balance between safe-haven demand and expectations of a manufacturing recovery. The metal is currently being supported by its 50-day moving average of $36.07. As long as prices stay above $36.31, the momentum will remain positive.

Traders are paying close attention to the upcoming U.S. inflation statistics, as both the Consumer
Price Index (CPI) and Producer Price Index (PPI) readings are due this week. If inflation begins to
moderate, the rationale for rate cuts may become stronger, providing additional support for both
metals.

Tariffs and tensions between countries increase Fuel Gold also gained strength after a federal
appeals court-maintained Trump-era tariffs, making US-China trade relations even more strained.
The Geneva Consensus talks have resumed, but issues with access to critical minerals continue to
exacerbate the situation.

Also read: Dollar falls as market watches US-China trade talks with caution