Gold (XAUUSD) & Silver Price Forecast: Powell’s Jackson Hole Speech Keeps Traders on Edge

LONDON (August 21) Gold and silver drifted lower in Asian trading as investors digested the Federal Reserve’s July meeting minutes, which reinforced concerns over persistent inflation. The minutes revealed that nearly all policymakers backed holding interest rates steady, but emphasized that inflation remains a larger risk than labor market weakness.

Analysts noted that this reduced the likelihood of a September rate cut, curbing investor appetite for non-yielding assets like gold and silver.

“The Fed appears to be keeping its tightening bias alive, and that makes it difficult for precious metals to build sustained momentum,” said a Singapore-based commodities strategist. The US Dollar extended gains on the hawkish tone, adding to the headwinds for metals priced in the greenback.

Geopolitical Shifts and US Political Risks

The metals market also absorbed geopolitical and political developments that shaped investor sentiment. Optimism surrounding potential progress in Russia-Ukraine peace efforts has eased safe-haven demand. Russian Foreign Minister Sergey Lavrov reiterated that any security arrangement would be incomplete without Moscow’s involvement, underscoring the complexity of negotiations.

Meanwhile, US domestic politics injected uncertainty into markets. Former President Trump’s demand for the resignation of Federal Reserve Governor Lisa Cook over alleged mortgage fraud has stirred debate about central bank independence.

Political instability, while weighing on the US Dollar’s long-term outlook, has provided limited support for gold and silver in the near term.

Investors Await Powell’s Jackson Hole Address

Looking ahead, investor attention is firmly on Fed Chair Jerome Powell’s upcoming remarks at the Jackson Hole Symposium. Markets expect Powell to offer critical guidance on the policy path, particularly regarding the balance between inflation risks and slowing growth.

Alongside Powell’s speech, flash PMIs, weekly jobless claims, and the Philadelphia Fed Manufacturing Index will provide essential signals on global economic momentum.

For now, gold and silver remain caught between the opposing forces of hawkish monetary policy and pockets of geopolitical uncertainty. Until clear direction emerges from the Fed, the metals market is likely to remain volatile, with traders closely tracking macroeconomic data and central bank commentary.

Short-Term Forecast

Gold remains choppy near $3,340, supported at $3,333 with resistance at $3,359. Silver trades around $37.82, holding support at $37.50; a break above $38.29 may extend gains toward $38.71–$39.19.

Gold Prices Forecast: Technical Analysis

Gold – Chart

Gold (XAU/USD) is trading near $3,340, holding above immediate support at $3,333 while facing resistance at $3,359. Price action remains choppy, but the ascending trendline from late July underpins a broader bullish structure.

The 50-EMA ($3,338) and 100-EMA ($3,343) are converging, signaling indecision, while the RSI at 53 reflects neutral momentum with slight upside bias.

A close above $3,359 could open the door toward $3,375 and $3,402, while failure to hold $3,333 risks a deeper pullback to $3,318 and $3,306.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver – Chart

Silver (XAG/USD) is trading around $37.82, consolidating below resistance at $37.93 while holding support at $37.50. Price is squeezed within a descending triangle, with the 50-EMA ($37.79) and 100-EMA ($37.86) acting as near-term pivot levels.

The RSI sits at 55, suggesting mild bullish momentum but not yet signaling strong conviction. A breakout above $38.29 could clear the path toward $38.71 and $39.19, while failure to hold $37.50 risks a slide toward $37.06 and $36.67.

FXEmpire