A metal analyst based in Hong Kong mentioned that “the chances of dramatic changes from the Fed are on the rise.” With real yields decreasing and the value of the dollar retreating, gold seems to be gearing up for another upward move.
Recent statistics from the US Department of Commerce indicated that retail sales remained stagnant in April. However, consumer price growth decelerated to 3.4% year-over-year, down from 3.5% in March. These trends appear to ease signals from the labor market, supporting the argument for monetary easing and enhancing gold’s attractiveness as a macro hedge.
Silver reaches $33.18 amid industrial demand and volatility
Silver (Xag/USD) also climbed, trading at $33.16 after hitting a peak of $33.18 during the day. It continues to gain from gold’s upward momentum, and its role both as a safe investment and a key industrial component adds complexity to the market.
Renewed interest in silver has emerged, especially from institutional buyers looking to hedge against economic instability, driven by concerns over global manufacturing growth and supply chain challenges.
Financial pressures and trade policy uncertainty drive safe haven flows
Market anxiety has intensified following Moody’s downgrade of the US credit outlook last week, pointing to a deficit expected to surpass 6.2% of GDP over the next two years. Furthermore, analysts predict that the proposed tax changes from the Trump administration could raise US debt by up to $5 trillion, adding to financial vulnerabilities.
Additionally, rising trade tensions between the US and China regarding semiconductor exports and industrial policy have reignited concerns about potential supply shocks and disruptions in growth.
