As an addition to the pressure, the expectations that the Federal Reserve can delay interest rates as a result of persistent inflation and strong consumer expenditures further weighed on gold trade.
The price index of the personal consumption expenditure (PCE) rose to 2.6% in December, while the core was 2.8%, in accordance with market expectations. Despite the short -term prospects, the markets still anticipate two tariff reductions by the end of 2025, which can offer support to gold in the longer term.
Silver is struggling under $ 31 in the midst of inflation problems
Silver (XAG/USD) is also under pressure and is traded at $ 30.92 after hitting an intra-day low of $ 30.69. The decline of the metal was reflected, hit by the robust US dollar and increasing inflation problems. Betting on the Federal Reserve that maintains higher interest rates have tempered the appeal of non-return assets such as silver.
However, silver can find support from global economic uncertainties. The constant risk-off sentiment, driven by fear of a global economic delay, could strengthen the demand for safe haven. The most important support levels are around $ 30.56, while resistance is seen near $ 31.26.
Global economic data contribute to market volatility
The Chinese Caixin Manufacturing PMI descended in January to 50.1 of 50.5 in December, following expectations. Although it is still indicated on expansion, this delay gives a weaker demand, which expresses concern about global economic prospects.
In the meantime, the American Finance Minister Scott Bessent warned that the rates could be inflation, so that the dollar may have been further strengthened and puts more pressure on precious metals.