Gold and Silver Price Forecast Summary
Author: Arslan Ali
Published: February 24, 2026
Market Overview
Gold (XAU/USD) has recently experienced a decline, dropping below the $5,250 mark after reaching a new high. This downturn is attributed to the strengthening of the US dollar, driven by the Federal Reserve's hawkish stance, which indicates that rate cuts are not imminent. The FOMC minutes reveal a cautious approach towards rate cuts, suggesting that any potential cuts will depend on rising inflation.
Impact of the Federal Reserve's Stance
The Federal Reserve's recent communications, particularly from Governor Christopher Waller, indicate a possibility of maintaining current rates if labor data remains stable. This hawkish attitude is exerting downward pressure on gold prices. Despite this, market expectations remain mixed, with traders still anticipating three rate cuts within the year, which could provide some support for gold prices.
Geopolitical Tensions and Safe-Haven Demand
Geopolitical tensions, particularly concerns about potential conflict in the Middle East, are contributing to a stable demand for gold as a safe-haven asset. Traders are cautious and are not ready to declare a full trend reversal in gold prices just yet.
Technical Analysis
Currently, gold is trading at approximately $5,182, having briefly touched $5,250. The price remains above the 0.50 Fibonacci support level at $5,000, with the next resistance level at $5,448 if it can break above $5,250. A decline below $5,000 could signal a loss of near-term momentum.
Silver Price Outlook
Silver (XAG/USD) is trading around $88.90, having rebounded from a low of $71.08. The price is above the 0.382 Fibonacci level at $86.13, indicating a shift in favor of buyers. The 50-period moving average is trending upwards, providing support. However, the $92.96 level remains a significant resistance point, with a break above this level potentially leading to further gains towards $100.
Conclusion
In summary, while gold faces pressure from a strong US dollar and a hawkish Federal Reserve, geopolitical tensions are providing a stabilizing effect on prices. Traders are advised to monitor upcoming US macro data and Fed speeches closely, as these will likely influence market sentiment and price movements in the coming days.