Gold, silver, and platinum projections: XAG/USD undergoes testing of unprecedented highs amidst anticipations of a Fed rate cut

Gold hits $2,185.19/oz, buoyed by U.S. job data and possible Fed rate adjustments. Silver's initial rise stalls, influenced by gold's movement. Platinum grapples to sustain its rally, encountering resistance around $922.22. Gold prices surged to a historic peak of $2,185.19 per ounce following a report revealing an uptick in the U.S. unemployment rate, igniting speculation about potential Federal Reserve interest rate reductions. Spot gold rose by 0.7% to $2,173.49, and U.S. gold futures also gained 0.7% to reach $2,180.50.

This significant rise, the largest weekly percentage increase since mid-October, was driven by expectations of Fed rate cuts and a weakening dollar, thereby increasing accessibility of gold for international buyers.

Traders heightened their bets on a Fed rate cut as early as May, although June is considered more probable. Overall, the gold market is experiencing a bullish trend due to its status as a safe-haven asset and anticipation of sustained low interest rates. Silver prices initially surged to nearly a three-month high on Friday, propelled by escalating U.S. unemployment rates and prospects of Federal Reserve rate cuts. However, the gains were short-lived as silver reversed its course by the end of the session.

The early surge in silver closely mirrored gold's record high, influenced by a report indicating sluggish wage growth amid a rapid increase in job figures. Market analysts attribute the likelihood of Fed rate cuts and a weaker dollar, which declined by 0.3%, as crucial factors making silver more accessible globally. Although the probability of a Fed rate cut by May has increased, June is deemed the more likely month. Silver's recent climb, surpassing its December peak, was backed by signs of easing price pressures and its function as a safe-haven asset. The environment of low-interest rates enhances silver's appeal by reducing the opportunity cost of holding the metal.

Despite an overall upward trajectory, silver's correlation with gold's market movements implies a cautiously bullish or nearly bearish market sentiment. In platinum trading, investors initially tracked gold's upward trajectory in the session but failed to sustain momentum above the 200-day moving average at $922.22, now acting as resistance. The closest support level is at the 50-day moving average of $906.62. A breach of this indicator on the downside would place platinum in a bearish position.