Fed Rate Cut speculation supports gold and silver
Investor sentiment to gold remains bullish because the markets anticipate this year for multiple tariff reductions by the Federal Reserve. Recent data on the American Non -Boeren (NFP) Data (NFP) showed that the economy added 151,000 jobs in February and falls short of the expected 160,000.
Moreover, the job growth of January was revised from 143,000 to 125,000, indicating a weaker labor market. The unemployment rate fell to 4.1%, which further strengthens the case for the facilation of monetary policy.
“The labor market shows signs of cooling, which reinforces the case for interest rates,” said Mary Daly, president of the San Francisco Fed. A weaker labor market usually presses under pressure from the Fed to lower the rates, which benefits the gold in the better if lower interest rates reduce the opportunity costs of keeping non-returns activa.
Silver also held, found support from the FED rate lowering betting and the demand for safe haven in the midst of continuous trading problems. The metal reached an intra-day low of $ 32.32 but managed to recover and remained within its weekly trade range.
Trade Uncertainty weighs on investor sentiment
Market security about American trade policy remains a key factor that influences gold prices. Former President Donald Trump recently gave a indicated potential rates in the field of Canadian import, which expressed concern about the disruptions of global trade and economic delay.
Investors fear that increased protectionist measures can harm US growth, so that the FED can lower rates earlier than expected.