Gold (XAUUSD) & Silver Price Forecast: Fed Cut, Strong Data Shape Market Outlook

Silver also tracked the broader safe-haven bid, with demand supported by its dual role as both a precious and industrial metal. Analysts note that geopolitical instability has coincided with firmer demand from the renewable energy and electronics sectors, helping silver sustain upward momentum despite currency headwinds.

Federal Reserve Signals Caution on Policy

While geopolitical drivers underpin gold and silver, a stronger U.S. Dollar continues to cap upside moves. The Dollar Index has stabilized after hitting multi-year lows, buoyed by the Federal Reserve’s careful stance on policy. This week, the Fed delivered its first rate cut since December 2024, lowering the federal funds rate by 25 basis points.

However, Fed Chair Jerome Powell emphasized that inflation risks remain tilted to the upside, tempering market expectations of rapid or aggressive easing.

His remarks echoed a cautious approach, balancing the need to support growth with the goal of containing price pressures. That stance has lent support to the dollar, limiting the performance of non-yielding assets such as gold and silver.

Strong U.S. Data Adds to Dollar Momentum

Recent U.S. economic data has further reinforced the dollar’s rebound, adding another layer of resistance to precious metals. Weekly jobless claims fell to 231,000, easing concerns about labor market softness.

Meanwhile, the Philadelphia Fed Manufacturing Index climbed to 23.2 in September, its strongest reading since January, signaling resilient business activity.