Traders are now focused on the upcoming US Personal Consumption Expenditure (PCE) price index, a key inflation measure closely watched by the Fed. This report could influence market sentiment and determine the trajectory for the gold price in the near term.
Silver benefits from inflation hedge appeal
Silver (XAG/USD) traded at $29.09 and reached an intraday high of $29.11, supported by its dual role as a safe haven and inflation hedge. Despite ongoing geopolitical tensions, silver appears to be more resilient than gold, with investors viewing it as a strategic hedge against economic instability.
However, the strong US dollar continues to weigh on silver as the Federal Reserve’s cautious approach to interest rate cuts has dampened market enthusiasm. As with gold, the outlook for silver is dependent on the release of the PCE Price Index, which could influence broader market sentiment.
Short-term forecasting
Gold is consolidating around $2,602 and faces resistance at $2,616, while the dollar is strong. Silver is trading at $29.10, with the oversold RSI indicating a potential recovery above the $29.69 pivot.