Gold (XAU/USD) & Silver Price Forecast: Oil and Yields Pressure Metals as Fed Turns Hawkish - FXEmpire

AI desk brief

Gold and silver remain under pressure as the market prices a higher probability of a 50bp Fed hike in October, with Fed funds futures odds rising to about 72% from 57% a week ago. The piece argues that elevated oil prices, sticky inflation, higher U.S. yields and a stronger dollar are lifting the opportunity cost of holding bullion, while Friday’s PCE and jobs data could be the next catalyst for further repricing.

Technically, gold is holding near $4,112 support after breaking below $4,225-28, with resistance at $4,190 and then $4,214/$4,238; a close below $4,112 would open $4,073 and $4,030. Silver is trying to base above $60.31 after falling to $60.95 from $62.18, with resistance at $61.45 and $62.18 and downside risk to $59.52 and $58.77 if $60.31 gives way.