Market sentiment is divided, with Atlanta Fed President Raphael Bostic suggesting room for two rate cuts this year, while other Fed officials remain cautious due to persistent inflation concerns. A weaker dollar typically supports gold prices, as it makes the metal cheaper for foreign buyers.
Gold’s Safe-Haven Appeal Amid Trade Uncertainty
Concerns over former US President Donald Trump’s proposed tariffs, which could escalate into a global trade war, are boosting gold’s appeal as a safe-haven asset. Investors are cautious about the potential economic impact of these trade restrictions, leading to increased demand for gold as a hedge against uncertainty.
Additionally, fears of rising inflation from these policies continue to support gold’s value, as the metal is often viewed as a reliable store of wealth in inflationary periods.
Silver Holds Steady Amid Industrial Demand and Dollar Weakness
Silver (XAG/USD) is trading at $32.78, experiencing a slight dip to an intra-day low of $32.74 due to mixed market signals. However, the metal remains well-supported by strong industrial demand and a weaker US dollar, which boosts its attractiveness to investors.
Unlike gold, silver benefits from its dual role as both a safe-haven asset and an industrial metal, keeping its bullish trend intact.
Short-Term Forecast
Gold remains bullish above $2,918.46, targeting $2,955.72. A break below could see $2,880.80. Silver supports bullish momentum above $32.55.