US economic data and dollar strength
The US dollar recently recovered after a sharp sell-off as Fed officials signaled fewer interest rate cuts in the near future. This comes amid a mixed economic outlook, with inflation concerns tempered by softer US PCE data.
According to CME’s FedWatch tool, markets expect a nearly 93% chance that the Fed will maintain interest rates at 4.25-4.50% in January.
Meanwhile, U.S. durable goods orders for November fell 1.1%, while the Consumer Confidence Index fell to 104.7, reflecting concerns about the new administration’s economic policies.
Outlook for gold and silver
With the US economy facing mixed signals, gold prices remain stable due to the stronger dollar and subdued inflationary pressures.
However, silver still faces volatility, and traders will want to keep a close eye on developments in the global economy and the Fed’s future actions.
Short-term forecasting
The gold price remains stable at $2,611, supported by cautious expectations of the US interest rate cut. Silver is under pressure from a stronger dollar, with market volatility impacting the short-term outlook.