Despite this headwind, the expectations of a federal reserve (FED) rate reduction remain intact. Markets anticipate two interest rates by the end of 2025, where Trump argues for immediate cuts. If the FED signals a relaxation cycle, this can record the yields of the bonds, weaken the dollar and offer support to gold prices.
Silver is confronted, struggles to keep Momentum
Silver (XAG/USD) trades around $ 30.06 and struggles to preserve Momentum in the midst of the resilient American dollar. Although silver often reflects the movements of Gold, it remains more vulnerable to shifts in industrial demand.
The uncertainty about rate increases on metal – including aluminum and copper – has increased volatility on raw material markets, further with a weight of silver prices.
In addition, China’s weak economic data, in particular a contraction in the production of PMI, expressed their concern about the demand for industrial metal. If global growth slows down, silver may be confronted with extra downward pressure.
Short -term prediction
Gold (XAU/USD) remains under pressure near $ 2,740 and struggles under the key resistance at $ 2,744.57. While Silver (XAG/USD) floats around $ 30.06, confronted with resistance at $ 30.24. A break above this level could push prices to $ 30.61, while sustainable sale can lower it to $ 29.86.