Friday's solid US non-farm payrolls (NFP) report strengthened expectations for a narrower rate cut, provided support for the US dollar (USD) and kept bond yields stable. As a result, gold faces limited upside, but remains attractive as a safe haven amid fluctuating economic indicators.
Silver follows gold’s rise even as yields fall
Silver (XAG/USD) mirrored gold's uptrend, reaching an intraday high of $29.76 before stabilizing around $29.67. The metal benefited from a slight decline in U.S. Treasury yields, making non-yielding assets like silver more attractive.
But like gold, silver's trajectory has been shaped by the Federal Reserve's cautious approach to monetary easing and stable U.S. Treasury yields.
Outlook: Economic data and geopolitical factors in focus
Traders are currently awaiting the US Producer Price Index (PPI) report for further market direction. If the PPI exceeds expectations, the Fed could become more hawkish and put pressure on gold and silver prices.
Meanwhile, geopolitical developments such as progress in U.S.-Russia relations and ceasefire efforts in the Middle East are boosting investor confidence and adding nuance to demand for safe havens.
short term forecast
Gold (XAU/USD) is above $2,658.87 and has bullish momentum with a target of $2,696.66. Silver (XAG/USD) stabilized at $29.67. Resistance at $30.06 is limiting further upside.
