“The uncertainty surrounding tariffs and the potential impact on global trade have strengthened the appeal of gold's safe haven,” said ANZ senior product strategist.
The upcoming US Consumer Price Index (CPI) report is expected to offer further direction as it closely looks at inflation trends and the Fed's policy stance.
As the dollar strengthens, silver becomes stable
Silver (XAG/USD) traded for $32.80 at $32.80 as investors weighed mixed market signals. Metals faced pressure from the rebounding US dollar, but remained supported by the Fed's easy policy expectations.
“Silver is in the integration phase, and price action is closely linked to inflation data and broader risk sentiment,” analysts at Philip Nova said.
A stronger CPI read than expected can strengthen the dollar and limit the upside down of silver, and weak inflation can rekindle bullish momentum.
Focusing on US dollar recovery and CPI data
The US dollar rebounded ahead of the CPI release, recovering overnight losses as traders positioned themselves for potential surprises in inflation data. The greenback recovery puts mild pressure on gold, but broader economic concerns kept demand for bullion intact.
