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Gold & Silver Prices Get Bullish Cue from Dovish Fed, Weak USD

Gold & Silver Prices Get Bullish Cue from Dovish Fed, Weak USD

Rich Dvorak, Analyst

GOLD & SILVER PRICE FORECAST BULLISH AS PRECIOUS METALS REACT TO DOVISH FED, SOFTER REAL YIELDS, WEAK US DOLLAR

  • Precious metals like gold (XAU/USD) and silver (XAG/USD) look positioned to stretch higher
  • Gold and silver outlook is constructive on the back of patiently dovish guidance from the Fed
  • Broad-based US Dollar weakness and falling real yields stand to bolster gold and silver prices
  • Check out the DailyFX Education Center or read up on these top gold trading strategies

Gold and silver prices turned sharply higher off session lows on Wednesday to close out on positive notes. XAU/USD gained ground with XAG/USD as precious metals popped on the back of a broadly weaker US Dollar. This came in response to the latest Fed update, which echoed how the central bank plans to leave its policy path unchanged for the foreseeable future.

GOLD PRICE CHART WITH SILVER & TEN-YEAR TREASURY YIELD OVERLAID: 5-MINUTE TIME FRAME (28 APRIL 2021 INTRADAY)

gold price chart with silver and ten-year us treasury yield overlaid

Chart by @RichDvorakFX created using TradingView

Dovish Fed policy guidance stands to keep exerting downward pressure on real yields and the US Dollar. In turn, these typically bullish fundamental drivers for precious metals look to help guide gold and silver prices higher. Other anti-fiat assets, like Bitcoin and Ethereum, might piggyback on this theme as well. Check out this gold price forecast for key breakout levels to watch with FOMC in the rearview mirror.

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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