Gold and Silver Price Forecast: China Buying Supports Metals
Published: June 02, 2026
Key Highlights
- The US-Iran ceasefire has been stable for over eight weeks, allowing tanker traffic to resume through the Strait of Hormuz.
- Gold prices rebounded to $4,534, showing bullish rejection candles at the blue descending channel floor.
- Silver prices surged to $76.55, clearing the 50-period moving average and ascending trendline with strong momentum.
Market Overview
On June 2, 2026, gold and silver experienced a lackluster trading day as investors processed April's U.S. inflation report, which exceeded expectations. The stability of the U.S.-Iran truce is also under scrutiny, impacting market sentiment.
Both headline and core inflation data for April were higher than anticipated, dampening expectations for imminent rate cuts. This has led to increased real rates and a stronger dollar, which are exerting downward pressure on gold and silver prices.
Central Bank Activity
Gold purchases by the official sector have been a significant factor supporting prices. The People's Bank of China has consistently bought gold for over 17 months, with other emerging market central banks also increasing their gold reserves.
Silver's industrial demand remains robust, particularly in sectors reliant on silver for electrical components and electric vehicles, although interest has waned slightly due to lower energy prices.
Technical Analysis
Gold Analysis
Gold has rebounded to $4,534, bouncing off the blue descending channel floor. The 2-hour chart indicates bullish continuation with green candles. The next resistance levels are projected between $4,550 and $4,576, with a strong support level at $4,526.
Trade Idea: Buy at $4,534, target $4,576, stop loss at $4,500.
Silver Analysis
Silver is currently at $76.55, having cleared the red 50-period moving average. The price action shows bullish momentum, with potential resistance levels identified at $77.32 to $78.00.
Trade Idea: Buy at $76.55, target $77.32, stop loss at $75.80.