While geopolitical tensions provide some support for silver as a safe haven, traders remain cautious ahead of the Federal Reserve’s policy announcement.
US retail sales and Fed signals are adding to the downward pressure
The US Census Bureau reported a 0.7% increase in retail sales in November, beating expectations of 0.5% and showing robust consumer spending. This positive economic indicator, coupled with resilient growth and moderating inflation, suggests that the Federal Reserve could suspend its interest rate cuts in January.
Higher bond yields – such as the yield on ten-year government bonds, which reached the highest level since November 22 – make gold and silver less attractive investments. “Strong retail data and the Fed’s hawkish stance are keeping pressure on precious metals,” said a senior market analyst.
Geopolitical tensions support the demand for safe havens
Despite bearish trends, ongoing global uncertainties are lending some support to gold and silver. The war between Russia and Ukraine, the instability in Syria and the unresolved conflicts in the Middle East contribute to cautious market sentiment. Although recent developments indicate that tensions in Gaza will ease, risks remain, increasing demand for safe havens.
Short-term forecasting
Gold remains under pressure around $2,647, while bearish momentum continues below $2,651.58. Silver is trading at $30.42 and is facing resistance at $30.61, reflecting continued cautious sentiment amid rising bond yields.