US Dollar stays firmly on Hawkish Fed Tone
The US Dollar Index (DXY) remains resilient near the level of 104.00. While it pauses his three -day rally, the wider force continues to weigh on gold. The recent comments from Federal Reserve Chairman Jerome Powell strengthened the cautious attitude of the central bank.
Powell noted that the labor market remains strong and inflation, although improved, is still increased. These comments have reduced the expectations for aggressive tariff reductions, in support of the dollar and putting pressure on non-building assets such as gold and silver.
Market expectations are now concentrating on potential tariff reductions in June, July and October, which can limit the benefit of the dollar and can offer support for gold in the short term.
Silver retains if geopolitical risks get stuck
Silver (XAG/USD) acts nearly $ 33.18 and is struggling to retain profit in the midst of a stronger dollar and fading momentum. However, the metal remains supported by persistent geopolitical tensions in Eastern Europe and the Middle East, which continue to stimulate the interest of safe port.
Although the risk-to-tone in shares has reduced some demand for port assets, rising tensions in conflict zones continue to offer underlying support. Recent strikes in the middle and ongoing military exchanges in Ukraine have retained market uncertainty.
Outlook: Focus shifts to inflation and production data
Investors are now looking for important US economic data, including the S&P Global Manufacturing PMI and Friday’s Personal Consumption Expenditures (PCE) Price index.