• Silver price advances due to rising safe-haven demand amid growing US fiscal concerns.
• The safe-haven demand increases amid rising geopolitical tensions in the Middle East.
• Ukraine will ask the European Union to seize Russian assets after President Trump pulled back from tightening sanctions.

Silver price (XAG/USD) rises to near $32.60 per troy ounce during the Asian trading hours on Thursday, gaining ground for the third successive session. Precious metals, including Silver, attract buyers amid rising safe-haven demand over growing fiscal concerns in the United States (US).

Moody’s downgraded the US credit rating from Aaa to Aa1, following similar downgrades by Fitch Ratings in 2023 and Standard & Poor’s in 2011. Moody’s also predicted that US federal debt is expected to climb to around 134% of GDP by 2035, up from 98% in 2023, with the budget deficit expected to widen to nearly 9% of GDP. This deterioration is attributed to rising debt-servicing costs, expanding entitlement programs, and falling tax revenues.

Additionally, the ongoing geopolitical unrest in the Middle East dampens the risk sentiment and drives investors toward safe-haven assets like Silver. However, Prime Minister Benjamin Netanyahu said that Israel would charge ahead with a military campaign to gain total control of Gaza, in the event of, failure of the return of hostages. Reuters cited the Israeli military as saying to let 100 aid trucks into the Gaza Strip on Wednesday, as UN officials reported that distribution issues had meant that no aid had so far reached people in need.

Next week, Ukraine is set to ask the European Union (EU) to seize Russian assets and put sanctions on some buyers of Russian Oil. As President Trump backed off from tightening sanctions, Ukraine will present an unreported white paper to the EU, asking 27-member countries to take an independent position on sanctions.

XAU/USD Current price: $3,298.25

• Upbeat S&P Global May PMIs helped the US Dollar during US trading hours.
• Wall Street trades in the green, but holds on to weekly losses.
• XAU/USD lost some upward steam, but the downside remains well-limited.

Spot Gold trades around the $3,300 mark, down from an early peak of $3,345.48. The US Dollar (USD) traded mixed across the FX board throughout the first half of the day, retaining the negative bias amid persistent concerns. Asian and European indexes closed in the red, reflecting the dismal mood.

The Greenback, however, found near-term support on upbeat United States (US) data. S&P Global released the flash estimate of the May Purchasing Managers’ Index (PMI), which showed manufacturing output improved to 52.3 from 50.2 in April, while the Services PMI rose to 52.3 from 50.8 in the same period. As a result, the Composite PMI surged to 52.1 after posting 50.6 in April, a two-month high.

Wall Street recovered some of the ground lost in the previous sessions, holding on to the green on a daily basis, albeit down for the week. Concerns about the US President Donald Trump’s tax bill and tariffs’ effects on economic growth were partially offset by data, yet remain in the background.

XAU/USD short-term technical outlook

The daily chart for the XAU/USD pair shows it posted a higher high and a lower low, but buyers keep defending the downside at around a flat 20 Simple Moving Average (SMA), providing support at around $3,288.00. The same chart shows that the 100 and 200 SMAs keep grinding north far below the current level, in line with the dominant bullish trend. Finally, technical indicators lost their bullish strength, but turned flat within positive levels, limiting the odds for a steeper decline.

In the near term, and according to the 4-hour chart, Gold lost upward steam, but there are no signs it could fall further. The XAU/USD pair keeps trading above all its moving averages, with the 20 SMA crossing above directionless 100 and 200 SMAs. Technical indicators, in the meantime, aim lower, although with limited strength and still holding above their midlines.

Support levels: 3,289.20 3,271.55 3,252.40

Resistance levels: 3,325.00 3,345.50 3,358.40

Bottoming Process Continues

Although the price of natural gas weakened today the technical bias is to the upside. Recently, a higher swing low was established, and the 200-Day MA was successfully tested as support. Also, be aware that the 20-Day line has been turning up following a downswing. Despite the assistance of the moving averages, the most recent swing high at $3.51 and swing low at $3.10 (C) provide key price levels as they help define the current trend price structure.

Higher Swing Low Indicates Upside Potential

Since a high swing low was recently established at $3.10 there is the potential for a rising ABCD pattern to eventually be completed. An initial target from that pattern is at $4.08. However, a bullish continuation signal isn’t provided until there is a rally above the most recent swing high at $3.61 (B).

Given the possibility of the upside target and the likely completion of the bearish correction at the April swing low (A), traders are likely to look to accumulate during current weakness in anticipation of a bullish continuation. Moreover, if key long-term support is sustained around the 200-Day line, there is the potential to eventually hit a new trend high, above $4.90.

Tuesday’s Reversal May be Just the Start

Also of interest is the sharp bullish reversal that triggered on Tuesday. It showed strong once a low was established. That improvement in demand is likely to last a little longer and therefore another period of strong buying could be seen once the current minor pullback is complete. The reaction of price once a low is established should provide further clues as to the changing supply/demand dynamics.

For a look at all of today’s economic events, check out our economic calendar.

• Silver gains as Moody’s downgrade and US budget vote weigh on sentiment.
• RSI remains bullish; break above $33.50 could target $34.00 next.
• Drop below $33.00 risks deeper pullback toward 100- and 200-day SMAs.

Silver price extended its rally to three days on Wednesday, edging up 0.21% as the Greenback continued to weaken across the board. Moody’s downgrade to US sovereign debt and the vote of the US fiscal budget, keeps investors seeking safety in the precious metal. At the time of writing, XAG/USD trades at $33.45.

XAG/USD Price Forecast: Technical outlook

Silver prices stabilized within the $33.00-$33.50 for the day and ended Wednesday’s session near the $33.40 area, closing into the first key resistance level at $33.50. As wrote yesterday, “The Relative Strength Index (RSI) favors buyers,” which means that a decisive breach of key resistance levels could pave the way to challenge $34.00.

On the other hand, if XAG/USD tumbles below $33.00, it would open the path to challenge the 100-day SMA at $31.98, followed by a test of the 200-day SMA at $31.30.

XAG/USD Price Chart – Daily

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The 50-EMA at $3,274 and the 200-EMA near $3,265 remain supportive beneath, reinforcing the bullish structure as long as higher lows hold. Key levels to watch include immediate resistance at $3,346 and support at $3,302.

A daily close above the top of the channel could target $3,379 next, but if momentum fades, a pullback toward $3,302–$3,265 looks probable. Gold remains bullish but overextended in the short term.

Copper price confirmed delaying the decline in the current period, due to the continuation of providing positive momentum by the main indicators, attempting to surpass the initial barrier at $4.6600, recommend waiting for confirming the breach to reinforce the chances for forming a bullish rally then targeting some of the positive stations that begin at $4.7500 reaching 61.8%Fibonacci correction level at $4.8100.

Activating the negative track requires forming a sharp decline, to settle below $4.5000 level, to confirm targeting several negative stations that begin at $4.4300 and $4.3100.

The expected trading range for today is between $4.5500 and $4.7500

Trend forecast: Bullish

Platinum price resumed the bullish rally to achieve the suggested target, to achieve the suggested target by hitting $1083.00 facing the resistance of the bullish channel that appears in the above image.

Reminding you that stochastic stability within the overbought level might force the price to provide intraday sideways trading, and the continuation of the current resistance stability might force the price to retest the initial support at $940.00, while breaching the resistance and holding above it will open the way for achieving new gains, forming an initial target at $1100,00 level, reaching the recently achieved top at $1125.00.

The expected trading range for today is between $1055.00 and $1083.00

Trend forecast: Sideways

Platinum price resumed the bullish rally to achieve the suggested target, to achieve the suggested target by hitting $1083.00 facing the resistance of the bullish channel that appears in the above image.

Reminding you that stochastic stability within the overbought level might force the price to provide intraday sideways trading, and the continuation of the current resistance stability might force the price to retest the initial support at $940.00, while breaching the resistance and holding above it will open the way for achieving new gains, forming an initial target at $1100,00 level, reaching the recently achieved top at $1125.00.

The expected trading range for today is between $1055.00 and $1083.00

Trend forecast: Sideways

XAU/USD Current price: $3,304.80

• Mounting trade tensions and the United States tax bill undermine the market mood.
• S&P Global will release estimates of the May PMIs for most major economies.
• XAU/USD consolidates gains above $3,300, prepares to extend weekly gains.

Gold extended gains beyond the $3,300 mark on Wednesday, still backed by broad US Dollar (USD) weakness. The XAU/USD pair reached a fresh one-week high of $3,320.70, retreating towards the current $3,310 price zone after Wall Street’s opening.

The USD keeps falling on the back of unresolved global trade issues and fresh tax-related concerns. The United States (US) announced a 90-day pause in retaliatory levies a couple of weeks ago, bringing relief and risk appetite back to financial markets. However, as time goes by, deals are nowhere near. Mounting tensions between the country and China and Japan are taking their toll on sentiment.

Meanwhile, US President Donald Trump’s tax bill advances in Congress. The bill aims to make permanent the 2017 tax cuts from Trump’s first term. It would reduce some taxes, while raising others and changing spending amounts. The House is set to discuss it on Thursday.

Thursday will also bring the preliminary estimates of May S&P Global Purchasing Managers’ Index (PMI) for most major economies. The US Manufacturing PMI is foreseen at 50.1 while services output is expected at 50.8, little changed from April’s figures. Still, signs of further contraction in business output will likely add to the broad USD weakness.

XAU/USD short-term technical outlook

The daily chart for the XAU/USD pair shows it extended its advance beyond its 20 Simple Moving Average (SMA), which now acts as support at around $3,289.20. The 100 and 200 SMAs keep advancing well below the current level, while the Momentum indicator maintains its bullish slope above its 100 level, all of which supports another leg higher. The Relative Strength Index (RSI) indicator, however, turned flat at around 54, hinting at some consolidation before the next directional movement.

The 4-hour chart shows the XAU/USD pair consolidates above all its moving averages, with the 20 SMA extending its advance below still flat 100 and 200 SMAs. Technical indicators, however, have lost their upward strength. The Momentum indicator heads marginally lower within positive levels, while the RSI indicator seesaws around 64, reflecting the ongoing pause.

Support levels: 3,289.20 3,271.55 3,252.40

Resistance levels: 3,325.00 3,342.95 3,358.40