Gold and Silver Price Forecast: Safe-Haven Demand Revives
Published: February 06, 2026
Author: Arslan Ali
Market Overview
Gold (XAU/USD) has shown a rebound near the $4,840 level, driven by a risk-off sentiment in the market that has led investors to seek safe-haven assets. This upward movement comes as expectations for interest rate cuts by the US Federal Reserve in 2026 have increased, further supporting gold prices. The price of gold reached an intraday high of approximately $4,846.
Silver (XAG/USD) has also experienced bullish momentum, trading around $74.00 with gains of about 4.26%. This rally is attributed to the same risk-off mood, a weaker US dollar, and rising expectations of rate cuts by the Federal Reserve.
Weak US Jobs Data and Rate Cut Hopes
The US dollar has weakened due to expectations of lower interest rates, particularly after disappointing labor market data. The ADP report indicated a mere 22,000 increase in private-sector jobs for January, significantly below the revised figure of 37,000 from the previous month and market expectations. Additionally, the JOLTS report showed a decline in job openings, and weekly jobless claims rose to 231,000, exceeding forecasts. This weak data has contributed to the bearish sentiment surrounding the dollar, thereby bolstering gold's appeal.
Gold Price Outlook
Gold is currently testing key support levels around $4,840. The price remains below a falling trendline from January's peak and the 50-EMA at approximately $4,950, which is acting as resistance. The support area between $4,680 and $4,700 aligns with the 38.2% Fibonacci retracement level. If gold can break above $4,950, it may target $5,150; however, a drop below $4,680 could lead to further declines towards $4,400.
Trade Idea: Consider buying if gold breaks and holds above $4,950, targeting $5,150 with a stop set below $4,680.
Silver Price Forecast
Silver is trading around $72.40, continuing its pullback from a high of $120. The price remains below the 50-EMA and 200-EMA, indicating a bearish setup. The previous support level at $81.30 has now turned into resistance. The next downside targets for silver are $64.40 and $60.00, which correspond to earlier consolidation levels. The momentum indicators suggest that sellers are still in control, with the RSI below 40.
Trade Idea: Consider selling on rebounds below $75, aiming for $64, with a stop above $82.
Conclusion
The current market conditions indicate a strong demand for gold and silver as safe-haven assets amid economic uncertainty and expectations of interest rate cuts. Traders should monitor key support and resistance levels to make informed trading decisions.