Gold remains firmly in an uptrend, driven by safe-haven demand amid economic uncertainty. President Donald Trump’s aggressive tariff policies have heightened concerns over global trade, pushing investors toward gold as a hedge.
Central bank demand continues to provide strong support, with analysts at Commerzbank noting that institutional buying remains steady despite a lack of fresh data. Adding to the bullish case, expectations of Federal Reserve rate cuts in 2025 have strengthened, further boosting gold’s appeal.
Goldman Sachs has raised its year-end gold target to $3,100 per ounce, citing structural demand from central banks and growing trade-related volatility. With gold already up nearly 10% year-to-date, its momentum remains strong, creating a favorable backdrop for silver.
Will Silver Break Through Resistance or Face a Pullback?
Silver is closely tracking gold’s movement, currently testing a critical Fibonacci resistance level at $32.53. A decisive breakout above this level could spark an acceleration toward last week’s high of $33.39, with no major resistance beyond that point.
However, failure to clear $32.53 could invite selling pressure, potentially triggering a pullback toward $31.81. This level will be key for traders looking to buy into any dips, as broader market fundamentals remain supportive.
What’s Next for Silver: Breakout or Consolidation?
Gold’s strength continues to provide a solid foundation for silver’s rally. If silver successfully breaks above $32.53, the next upside target will be $33.39 and beyond. A rejection at this level, however, could lead to a temporary dip, offering new entry opportunities.
