Gold (XAUUSD) & Silver Price Forecast: Fed Rate Cut Bets Stir Market Volatility

Gold’s near-term path is closely tied to the U.S. dollar, which has fallen to its weakest level since July. A softer greenback, coupled with expectations of easier monetary policy, continues to underpin safe-haven demand.

Silver Tracks Lower on Cautious Positioning

Silver edged lower to $42.70, with traders also trimming exposure before this week’s policy announcements. While the metal has lagged Gold’s surge, its demand profile remains supported by both safe-haven flows and industrial applications.

Rising global solar investment and robust electronics demand have provided structural backing for Silver, though short-term moves remain highly sensitive to shifts in dollar strength and risk sentiment.

Global Central Banks and Geopolitical Risks Add Volatility

Beyond the Fed, policy updates from the Bank of Canada on Wednesday, the Bank of England on Thursday, and the Bank of Japan on Friday are expected to inject volatility into precious metals. Analysts note that coordinated easing among major central banks could reinforce bullish momentum for both Gold and Silver.

At the same time, geopolitical tensions remain elevated. Recent military escalations in Eastern Europe and the Middle East have reinforced the case for defensive positioning in precious metals. “Markets are trading on fear hedges as much as on fundamentals,” one London-based analyst remarked.

With central bank decisions set to dominate the week, traders expect sharp swings in both Gold and Silver, with policy guidance and geopolitical risks determining whether the metals extend their record-setting rally or face a period of consolidation.