Silver (XAG/USD) traded at $30.26 and reached an intraday high of $30.32. The metal mirrored gold’s trajectory, benefiting from inflation concerns and geopolitical risks. However, like gold, silver faces headwinds from the strength of the dollar and high bond yields, which limit its upside potential.
The cautious stance of the Federal Reserve and inflation expectations
The slower pace of rate cuts by the Federal Reserve continues to impact market dynamics. Higher yields on US government bonds and a robust dollar are increasing pressure on gold and silver. Officials emphasize a data-driven approach, indicating only two quarter-point rate cuts in 2025. Persistent inflation, which is expected to remain above 2%, remains a key concern, with policymakers taking a cautious stance.
Traders look to the US Nonfarm Payrolls (NFP) report for further insights. Despite these challenges, gold remains poised for a second straight week of gains, reflecting its resilience amid market volatility.
Short-term forecasting
Gold prices remain bullish near $2,674, driven by safe haven demand and inflation concerns, with resistance at $2,690. Silver is consolidating around $30.23, waiting for direction.