The escalating tariff measures strengthened the US dollar, making gold less attractive for international investors. A stronger dollar increases the costs of gold for buyers who use other currencies, which contributes to the recent sales pressure.
Silver faces headwind as the dollar strengthens
Silver (XAG/USD) also struggled, acting at $ 31.23, weighed by a robust US dollar and trade policy. The power of the dollar is supported by positive US economic data and a ragless attitude of the Federal Reserve.
The economic growth of the US remained stable with 2.3% in Q4 2024, meets the expectations and increasing the trust of investors in the dollar. The US Dollar Index (DXY) held up above 107.00, which maintained pressure on silver as a non-ranking.
As an addition to the misery of Silver, the trade tensions of the US china continued to escalate, the US with increased rates on Chinese goods to 20%. Despite China’s liquidity measures, including a CNY300 billion injection through the medium -term loan facility (MLF), silver prices remained under pressure.
The bearish sentiment for both gold and silver was further strengthened by comments from the Federal Reserve Bank of Atlanta President Raphael Bostic, who emphasized the need to maintain high interest rates to control inflation.
These ragged prospects reduced the expectations of reductions in the short term, which limits the attraction of non-building assets such as gold and silver.