Investors are now waiting on Friday for the Price Index Report of the US Personal Consumptions Expenditures (PCE), which can give instructions on inflation and the position of the Federal Reserve about interest rates.
If the data indicates cooling inflation, this can feed the expectations of a speed reduction, which may increase gold prices. Until that time, gold will probably act within a strict reach, because traders weigh economic concerns against market sentiment.
Silver is struggling under $ 32 in the midst of economic uncertainty
Silver (XAG/USD) is traded at $ 31.76, after an Intrad-Day low of $ 31.54, put under pressure by a strong US dollar and rising treasury yields. Just like gold, silver also experiences sales pressure when investors turn into riskier assets in the midst of a bullish stock market.
However, current economic uncertainty and speculation about potential federal reserve rate reductions prevent a steeper decrease.
Important economic events to look at
Traders are aimed at the American PCE price index that owes on Friday, who can influence the decisions of the Fed interest rate. Other important economic reports This week are the GDP of Q4, sustainable goods assignments and weekly unemployed claims.
If the data supports weaker economic prospects, this can increase the chance of a speed reduction, so that both gold and silver may be supported.