Gold and Silver Prices Hold Strong as Fed Decision Looms Amid Mixed U.S. Data

Gold (XAU/USD) and silver (XAG/USD) prices are holding firm in early Tuesday trading as markets await the Federal Reserve’s latest policy announcement. A mix of improving U.S. economic data and persistent global uncertainty has boosted demand for safe-haven assets, pushing gold to near a two-week high around $3,387 and silver to $33.10.

Safe-Haven Demand Boosts Precious Metals Despite trimming intraday gains, gold remains resilient amid geopolitical risks and cautious investor sentiment. The latest strength is fueled by uncertainty surrounding the Fed’s policy path and President Trump’s tariff actions, which have cast a shadow over broader market sentiment.

“Gold is holding firm as a hedge against uncertainty—both economic and geopolitical,” noted a commodities strategist at ING.

Silver Tracks Gold’s Momentum Silver continues to mirror gold’s performance, benefitting from a flight to safety and technical tailwinds. Trading around $33.10, silver has reclaimed key support levels and is inching toward a potential breakout above the $33.20 resistance mark.

U.S. Economic Data Supports Optimism, But Risks Persist The ISM Services PMI climbed to 51.6 in April, topping forecasts and indicating continued growth in the U.S. service sector. Additionally, a strong April jobs report helped ease recession concerns. However, lingering inflationary pressures and geopolitical tensions keep markets on edge.

“While the data points are supportive of growth, uncertainty around inflation and the Fed’s next steps keeps investors defensive,” said a senior economist at Capital Economics.

All Eyes on the Fed With no rate change expected, investors will closely monitor Jerome Powell’s post-meeting remarks for clues about potential rate cuts later in the year. The Fed’s stance could significantly influence gold and silver price trajectories in the short term.

Gold Price Technical Outlook Gold is currently consolidating near $3,362 after breaking through resistance at $3,351. A daily close above $3,389 could trigger a bullish breakout targeting $3,442 and $3,501. Immediate support lies at $3,351, followed by the 50 EMA at $3,290.

Silver Price Technical Outlook Silver trades near $32.98, with resistance at $33.20 posing the next upside test. A breakout here could pave the way toward $33.39 and $33.70. Key support remains at $32.77, with secondary support at the 50 EMA around $32.53.

Short-Term Forecast Precious metals are poised to remain buoyed by global risk aversion and cautious Fed sentiment. Gold could rally toward $3,442 on a breakout, while silver eyes $33.70 if bullish momentum holds.

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