The shift in the sentiment of investors comes as the American treasury bond decreases, making non-revenue assets such as gold more attractive. At the same time, the US Dollar (USD) is struggling to retain its profit, which contributes to Gold’s upward momentum.
Despite this bullish process, the expectations of long-term high interest rates of the Federal Reserve, as indicated by the Hawkish FOMC minutes, could limit Gold’s profit.
Currently, markets are the prize in a reduction of 38 basic points in December, according to LSEG data, but FED officials remain careful with inflation risks.
Silver profit in the midst of economic uncertainty
Silver (XAG/USD) also benefits from the risk-off sentiment and acts at $ 32.83 after reaching an intra-day high point of $ 32.87.
The weaker USD and the fear of a trade war support silver prices, because investors want to diversify their portfolios with safe harbor metals.
However, uncertainty about the interest strategy of the FED prevents a more robust rally.