Despite the bullish sentiment, broader optimism on the stock markets could limit the upward potential of gold in the short term. Technical indicators indicate a slightly overhead climate, which can give rise to some profit in the run -up to the next big step.
Silver prices follow gold in times of economic uncertainty
The silver price (XAG/USD) has also risen and traded at $ 30.80 after a highest point in the course of the day of $ 30.86. Just like gold, silver has benefited from the weaker dollar and the expectations of interest rate cuts by the FED. Lower bonds have increased the attraction of silver, making it an attractive investment in the midst of increasing economic uncertainty.
The dual role of silver as an industrial and safe haven has stimulated the demand, in which persistent concerns about the impact of American trade policy and inflation further supported prices. Analysts suggest that the upward trend of silver could continue while traders are waiting for important economic data that can offer more insight into global growth trends.
The weakening dollars, largely influenced by Trump’s comments about trade policy, has been an important factor behind the rally of gold and silver. Now that the markets are anticipating possible interest rates of the Federal Reserve, the demand for both metals as a safe haven remains strong.
While Traders are waiting for Flash-PMI data for further economic signals, the prospects for gold and silver in the short term bullish remain. However, a resistance level of $ 2,785 for gold and $ 31.20 for silver could yield challenges for further profit.
Short -term prediction
The gold price is ready for further increases now that the weaker US dollar and the falling bonds are stimulating question. Important resistance to $ 2,785 could challenge the bullish trend.