The US dollar remains strong in Hawkish's federal tone
The US Dollar Index (DXY) is resilient near the 104.00 level. While pausing the three-day gathering, wider strength continues to weigh the gold. Recent comments from Federal Reserve Chair Jerome Powell have reinforced the central bank's cautious attitude.
Powell said the labor market remains strong and inflation is improving, but it is still rising. These statements lower expectations for aggressive interest rate cuts, support the dollar and put pressure on non-revenue assets such as gold and silver.
Currently, market expectations are focused on potential interest rate cuts in June, July and October. This will help you reduce the benefits of the dollar and provide short-term support for gold.
Silver is stable as geopolitical risks remain
Silver (Xag/USD) is trading nearly $33.18 and is struggling to maintain profits amid stronger dollars and declining momentum. However, metals remain supported by sustained geopolitical tensions in Eastern Europe and the Middle East, continuing to promote the profits of safe inventory.
The risk-on tone of stocks has reduced demand for haven assets, but the rising tensions in conflict zones continue to provide fundamental support. Recent strikes in the Middle East and ongoing military exchanges in Ukraine have maintained market uncertainty.
Outlook: shifts focus to inflation and manufacturing data
Investors are currently looking for important data from US economic data, such as the S&P Global Manufacturing PMI and the Friday Personal Consumption Expense (PCE) price index.
