Analysts suggest that if the Fed registers a cautious attitude, gold can be resisted in the vicinity of $ 2,970. However, if the expectations of the rate strengthen, the Bullion can increase the profits $ 3,000.
Silver faces pressure if a dollar finds stability
Silver (XAG/USD) acts at $ 32.78 after reaching an intraday layer of $ 32.47. The metal is confronted with resistance while traders take a profit, while a steady American dollar and sturdy treasury yields limit the upward potential.
The American 2-year-old treasure district return holds 4.29%, while the 10-year-old note remains at 4.55%, the economic conditions of the company. With the FED minutes, the next step of Silver is likely to depend on interest rate guidance.
If policy makers indicate an extensive break in speed reductions, silver can withdraw to $ 31.50. However, a Dovish shift could renew the purchase interest and shift the prices to $ 33.50.
The US Dollar Index (DXY) is at 107.00, which is a reflection of market uncertainty. Traders remain careful when they assess the approach to the inflation of the FED. Philadelphia Fed President Patrick Harker has argued for keeping the rates stable, while President Mary Daly of San Francisco has indicated the uncertainty about the cutbacks on 2025 interest rates.
With inflation still a concern, FED chairman Jerome Powell claims that strong labor market conditions do not require immediate reductions. Markets are now waiting for the FOMC memorandum for direction, with the following movements of Gold and Silver that hang on policy signals.