“Investors seek shelter in gold as the landscape becomes more unpredictable,” said a raw material analyst at a trading company established in Singapore. Market participants now weigh the risk of retaliation trading measures that can dampen global demand and weigh on risk assets.
Silver supported by weak dollars and fed bets
Silver prices remained resilient and traded at $ 34.29 after falling to an intraday layer of $ 34.16. Although less volatile than gold, silver also benefits from the weaker dollar and speculation of reductions on short interest rates. Despite the American Q4 GDP growth of 2.4% and the first unemployed claims fell to 224,000, the Greenback had trouble getting a grip, so Silver remained floating.
Marktfocus has shifted to the Federal Reserve policy path, especially after comments from Boston Fed President Susan Collins, who stated that increased trade barriers could generate inflation. Richmond Fed President Tom Barkin repeated concern, which suggests that the central bank may have to retain a cautious attitude towards monetary policy despite solid head data.
PCE -Inflation data in Focus
All eyes are now focused on the upcoming American price spending for personal consumption expenditure (PCE), the desired inflation meter of the FED. A softer than expected print could strengthen the expectations of a rate reduction by June, giving further support to gold and silver further support.
With geopolitical uncertainty and alleviating inflation dynamics, analysts expect that precious metals will be properly supported in the short term, especially if the FED indicates greater flexibility in its policy position.