Gold (XAUUSD) & Silver Price Forecast: Tariff Risks & Fed Cut Bets Boost Safe-Haven Demand
LONDON (April 11) Gold prices remained elevated on Friday, hovering near all-time highs around $3,220 per ounce, as persistent U.S. dollar weakness and rising expectations for Federal Reserve rate cuts continued to buoy investor demand.
The U.S. Consumer Price Index (CPI) unexpectedly fell 0.1% in March, while headline inflation eased to 2.4% year-over-year, down from 2.8% in February. The data missed consensus forecasts of 2.6%, reinforcing the view that inflation is cooling faster than expected.
The core CPI, which excludes volatile food and energy prices, also declined to 2.8%, giving traders more confidence that the Fed will pivot toward monetary easing.
According to CME FedWatch Tool data, markets are now pricing in three to four interest rate cuts by year-end, significantly increasing gold’s appeal as a non-yielding asset amid falling yields.
“The softer inflation data puts the Fed on a clearer path to cutting rates, and that’s fundamentally bullish for gold,” said Ilya Spivak, head of global macro at Tastylive.
Silver Tracks Gold’s Strength Amid Industrial Demand Optimism
Silver followed gold’s upward trajectory, trading around $31.35, with an intraday high of $31.37. The white metal has gained on both safe-haven flows and improved industrial demand prospects.
Easing inflation pressures are also reducing cost burdens for manufacturing, helping to boost sentiment across industrial commodities.
Technical indicators show silver’s bullish momentum remains intact as long as the price holds above $30.50.
U.S.-China Tariffs Reignite Risk-Off Sentiment
Geopolitical tensions resurfaced after President Trump imposed 125% tariffs on Chinese imports, with Beijing responding with 84% retaliatory duties. While the U.S. temporarily paused tariffs for several allies, the aggressive stance toward China rekindled fears of a broader economic slowdown.
Concerns over potential fallout, including disruptions in global supply chains and speculation that China could reduce U.S. Treasury holdings, helped fuel safe-haven flows.
Analysts warn that continued escalation could weigh on global growth, keeping gold and silver supported in the near term.
Short-Term Forecast
Gold and silver remain elevated amid softer inflation and tariff tensions. A breakout above $3,220 and $31.96 may confirm upside; otherwise, expect consolidation below key resistance zones.
FXEmpire
