“The uncertainty about rates and their potential effect on world trade is to strengthen Gold’s safe-having profession,” said a senior commodity strategist at Anz.
The upcoming US Consumer Price Index (CPI) report is expected to give further direction, whereby markets keep a close eye on the inflation trends and the policy position of the FED.
Silver remains stable as the dollar strengthens
Silver (XAG/USD) traded at $ 32.80, slightly above its intraday layer of $ 32.73, while investors weigh mixed market signals. The metal was confronted with pressure from a healing US dollar, but remained supported by expectations of a simpler FED policy.
“Silver is in a consolidation phase, with a price promotion that is closely linked to inflation data and a broader risk sentiment,” said analysts at Phillip Nova.
A stronger than expected CPI lecture could strengthen the dollar, limiting Silver’s benefit, while weaker inflation can restore the bullish momentum.
US Dollar Recovery and CPI data in Focus
The US dollar returned for the CPI release and restored some overnight losses, while traders positioned themselves for possible surprises in inflation data. The recovery of the Greenback put mild pressure on gold, but broader economic concerns kept the question of the noble power intact.