The easing of concerns about trade tariffs under new President Donald Trump and geopolitical tensions have further reduced demand for gold as a safe haven. However, the potential for a rate hike by the Bank of Japan next week added pressure, keeping the metal within a tight trading range.
Despite these challenges, gold is on track for its third straight weekly gain as investors await critical US housing data for new directions.
Silver under pressure due to the strong US dollar
Silver (XAG/USD) fell to $30.68, posting slight losses as a stronger US dollar and mixed market sentiment weighed on the precious metal.
Unlike gold, silver lacks the same appeal as a safe haven, yet it remains supported by positive sentiment in the commodity markets.
Inflation concerns could still boost silver prices, especially if economic uncertainties persist.
US economic data supports a mixed outlook
US inflation eased in December, fueling speculation of up to two Federal Reserve rate cuts this year. Retail sales rose 0.4%, while November figures were revised upwards to 0.8%, indicating resilience in consumer spending.