“It remains the Safe-Haven question driven by concern about rates, trade and global instability,” said Peter Grant, vice-president and senior metal strategist at Zaner Metals.
Fed Policy Outlook remains central in the momentum of Gold
The price index of the personal consumption expenditure (PCE) – the preferred measure of the FED – is 0.4% in February, slightly above the consensus of 0.3% and mirrors the print of January. Although the data, although mildly, are unlikely, the Dovish expectations will derail.
Markets now praise in 63 basic points of tariff reductions at the end of 2025, with the first reduction expected in July, according to CME Fedwatch. The FED has kept the interest rates steadily this year after delivering three cutbacks in 2024, and policy makers have indicated an openness for a point of 50-based that will be cut later this year if inflation would continue to cool.
Low interest rates usually stimulate non-return assets such as gold due to the opportunity costs to retain them.
Silver Tracks Gold, breaks above $ 34.00
Silver prices also gathered and hit $ 34.13 per ounce – the highest in more than a year – when the wider metal complex got strength. Technical indicators show resistance of silver space near $ 33.93, with analysts now looking at the $ 35.07 zone.
The dual role of Silver as a precious and industrial metal positions it well in the midst of improving global production sentiment.