Friday’s strong US Nonfarm Payrolls (NFP) report reinforced expectations of reduced rate cuts, support for the US dollar (USD) and holding bond yields steady. As a result, gold faces limited upside potential, although gold’s safe-haven appeal remains amid fluctuating economic signals.
Silver follows gold’s gains during falling interest rates
Silver (XAG/USD) mirrored gold’s uptrend, reaching an intraday high at $29.76 before stabilizing around $29.67. The metal benefited from a slight decline in US Treasury yields, which made non-yielding assets such as silver more attractive.
But like gold, silver’s price is determined by the Federal Reserve’s cautious approach to monetary easing and stable US bond yields.
Outlook: economic data and geopolitical factors in focus
Traders are now awaiting the US Producer Price Index (PPI) report for further market direction. A stronger-than-expected PPI could reinforce the Fed’s hawkish stance, potentially putting pressure on gold and silver prices.
Meanwhile, geopolitical developments, including US-Russia relations and progress on a ceasefire in the Middle East, are boosting investor confidence and adding nuance to the demand for safe havens.
Short-term forecasting
Gold (XAU/USD) is holding above $2,658.87, while bullish momentum is targeting $2,696.66. Silver (XAG/USD) holds steady at $29.67; resistance at $30.06 limits further gains.