On Thursday (February 27th) during the European trading session, gold was struggling to break free from its downtrend, hovering around $2895 but still above the critical $2875 level. As the yield of US treasury bond bonds rose and the US dollar strengthened, gold, a precious metal, was under pressure and became less attractive as a non interest bearing asset. The recent rise in the US dollar index reflects investors' optimism, further suppressing demand for safe haven assets such as gold.

Tastylive's Global Macro Head Ilya Spivak said, "The strong US dollar combined with positive stock market sentiment has put pressure on gold." However, the uncertainty surrounding Trump's potential tariff policies has provided some support, preventing gold from falling sharply.

Investors are currently closely monitoring Friday's report on the US Personal Consumption Expenditures (PCE) price index, which may provide clues about inflation and affect the Federal Reserve's interest rate policy stance.

If the data shows a cooling of inflation, it may trigger market expectations of interest rate cuts, which could potentially drive up gold prices. Prior to this, due to traders needing to balance economic concerns and market sentiment, gold prices may fluctuate within a narrow range.

Silver struggles below $32 under economic uncertainty

Silver (XAG/USD) is currently trading at $31.76 after hitting a intraday low of $31.54, under the pressure of a strong dollar and rising treasury bond bond yields. Like gold, in a bull market in the stock market, investors turn to higher risk assets, and silver also faces selling pressure.

However, the ongoing economic uncertainty and speculation that the Federal Reserve may cut interest rates have prevented a significant drop in silver prices.

Key economic events that require attention

Traders are paying attention to the upcoming release of the US PCE price index on Friday, which may affect the Federal Reserve's interest rate decisions. Other key economic reports this week include fourth quarter GDP, durable goods orders, and weekly unemployment claims.

If the data shows a weak economic outlook, it may increase the possibility of interest rate cuts, which could provide support for gold and silver prices.

Analysts suggest that a cautious optimism should be maintained given the continued impact of geopolitical tensions and economic uncertainty on demand for safe haven metals. Investors are advised to closely monitor inflation data and statements from the Federal Reserve to clarify market direction.

Short term forecast

Affected by the trend of the US dollar and inflation data, gold (XAU/USD) may trade within the range of $2875-2920. Pay attention to breakthroughs in key price points.

Gold Price Prediction: Technical Analysis

Gold (XAU/USD) was reported at $2887.29, down 0.99%, showing hesitation at the pivot point of $2920.52. Currently, prices are under pressure, with the 50 day moving average (EMA) forming resistance at $2918.57. If gold breaks through $2920.52, it may gain upward momentum and target the next resistance levels of $2956.68 and $2985.93.

From a downward perspective, the immediate support level is at $2864.54, and the stronger support level is at $2834.26. If the price falls below $2864.54, there may be a greater drop, which could test the level of the 200 day moving average of $2839.91.

At present, the trend below $2920.52 is still downward, but breaking through this level will turn the momentum upwards.

Silver Price Prediction: Technical Outlook

Silver (XAG/USD) was reported at $31.76, a slight decrease of 0.01%, and is currently below the pivot point of $31.95. This is a key observation level, as breaking through this level may trigger buying interest and push the price towards the next resistance level of $32.48, and more importantly, the resistance level of $33.10.

From a downward perspective, the immediate support level is at $31.28, and the stronger support level is at $30.69. If the price of silver falls below $31.28, the next target will be the 200 day moving average (EMA) of $31.67, which may indicate a further decline in price.

At present, as long as the silver price remains below $31.95, the trend tends to be downward, but breaking through this pivot point will turn the momentum upward.