Market sentiment points to a 70% probability of a 25 basis point rate cut at the December Federal Reserve meeting, keeping US Treasury yields low and strengthening gold’s appeal as a non-yielding safe haven.
The weakening US dollar, which fell after the labor market report, further supported gold prices by making the metal more attractive to foreign buyers.
Silver is following gold’s gains amid economic uncertainty
Silver (XAG/USD) also benefited from the weakening dollar, rising to $31.14, reflecting similar safe-haven demand. The metal remains supported by its dual role as an industrial and precious metal.
China’s latest economic data sent mixed signals, with the consumer price index (CPI) recording the smallest increase in five months, while the producer price index (PPI) showed signs of improvement.
These indicators point to moderate stability in China, the world’s largest silver consumer, lending additional support to the metal.
Short-term forecasting
Gold and silver prices remain bullish, driven by interest rate cut expectations and a weaker US dollar. The key resistance for gold is $2,656; silver eyes $31.28, pointing to further gains.