Gold and Silver Price Forecast: Profit-Taking Caps Rally as Key Levels Hold
Author: Arslan Ali
Published: December 29, 2025
Market Overview
Gold prices have recently retreated from record highs of approximately $4,550, primarily due to profit-taking by investors as the year-end approaches. The decline is exacerbated by low trading volumes during the holiday season and a stronger US dollar, which makes gold more expensive for non-US buyers. As a result, gold has slipped to around $4,513, indicating a potential pause in its upward momentum.
Dollar Strength and Market Outlook
The strength of the US dollar has significantly impacted gold prices. Recent labor market data, including a notably low 214,000 jobless claims, has supported the dollar, further capping gold's upside potential. Despite this, the expectation that central banks will continue to cut interest rates remains a supportive factor for gold prices. The Federal Reserve has already implemented three rate cuts this year, with more anticipated in 2026, making gold an attractive holding in the current market environment.
Short-Term Forecast
Currently, gold is trading near $4,473, consolidating after its recent pullback. Key support levels are identified at $4,455 to $4,430, while resistance is noted around $4,525 to $4,555. As long as gold remains above the support level of $4,455, the overall market bias is expected to remain bullish.
Gold Prices Forecast: Technical Analysis
From a technical perspective, gold is currently testing support levels around $4,470 to $4,455, which align with a rising channel and a trendline established in mid-December. If gold can maintain its position above these levels, traders may look to enter positions near $4,460 with a target of $4,550, while placing stop-loss orders below $4,430.
Silver Price Forecast: Technical Outlook
Silver has experienced a sharp pullback to $76.10, ending a recent rally that peaked between $82.00 and $84.00. The price action indicates that traders are taking profits rather than signaling a fundamental shift in market direction. Silver is currently testing a Fibonacci level at $75.48, which coincides with a rising trendline from earlier in the month, making this area critical for support.
Resistance for silver is expected around $78.70 to $79.10, while a break below $75.40 could expose further downside towards $73.50. The recommended strategy is to look for a bounce towards $75.50, targeting $78.80, with a stop-loss positioned just below $73.40.
Conclusion
In summary, both gold and silver are experiencing significant price movements influenced by profit-taking, dollar strength, and market sentiment regarding interest rates. Traders are advised to monitor key support and resistance levels closely as they navigate these volatile markets.