Adding to market unrest, American consumer confidence fell sharply to 98.3 of 105.3 in February, which marked the steepest decline since August 2021, according to the Conference Board. This decrease reflects the growing caution among American consumers, who can weaken economic growth and can increase the demand for safe port activa such as gold.
Traders are also waiting for the Pres -Index of the US Personal Consumptions Expenditures (PCE) for January, the preferred inflation measure of the FED, which will be released on Friday. This report could significantly influence gold prices by forming the expectations of the market for future decisions of the FED rate.
Silver is confronted with pressure in the midst of FED policy and commercial insecurity
Silver (XAG/USD) acts around $ 31.62 and is struggling to win up momentum while traders weigh economic uncertainty against rising American treasury yields. The metal reached an Intrad-Day low of $ 31.62, which reflects a careful sentiment in the midst of concern about American trade policy and the interest rate views of the Federal Reserve.
Although weaker consumer confidence has supported the demand for safe haven, the increasing yields of the treasury limit the upward potential of Silver.
Investors closely monitor emerging economic data, in particular the American PCE price index, which can influence silver prices. Moreover, it is expected that comments from FED officials, including Raphael Bostic and Thomas Barkin, will provide further insights into the future rate decisions of the Central Bank.
Volatility expected in the midst of important economic data releases
Both gold and silver are likely to experience increased volatility in the coming days, driven by upcoming economic reports and continuous commercial health. Important events to view are the American new home sales report and the speeches of FED officials, who can influence the market sentiment and the price direction.