Silver tracks gold and faces sales pressure
Silver (XAG/USD) reflects gold’s weakness, trading at $33.44 after touching on a low low of $33.37. The broader risk-on tone, supported by a decline in US economic figures and trade friction, contributed to the decline.
Both metals are under pressure as investors slop towards stocks and leaning towards higher yield assets.
Stronger US data increases the dollar and supplies dovishness Cususions Gold
The US macro data released on Thursday showed remarkable strength. Weekly unemployment claims have now reached 222,000, reflecting the still addictive labor market. Durable goods orders surged 9.2% in March – a 27% rise for the third consecutive time in transportation equipment, which strongly strengthened its 2% forecast.
This strengthened the US dollar and weighed more gold. However, Dovish’s commentary from Fed officials provided a partial buffer.
Cleveland President Beth Hammack said interest rate cuts could begin as early as June, but Gov. Waller acknowledged the need to ease policy if tariffs begin to hurt jobs. Currently, the market is priced with up to three interest rate cuts by the end of the year.
Geopolitical tension provides a safe haven floor
Despite the pullback, geopolitical uncertainty continues to support money. One of the deadliest things since the start of the conflict, the missile strike in Kiev killed at least 12 people and maintained a geopolitical risk premium embedded in gold prices.
