Investors' focus has also shifted to the Federal Reserve's monetary policy, amid expectations that President-elect Donald Trump's economic strategy could spur inflation.
There is an 85% chance of a 25 basis point rate cut in December, according to the CME Fedwatch tool, but speculation that further rate cuts will be paused has lifted the dollar and capped any potential gains in gold. There is.
Silver follows gold’s momentum and trades above $31.90
Silver prices mirrored the strength of gold, trading around $31.90 and reaching an intraday high of $32.06. The metal's safe-haven status and close relationship with gold have supported its gains.
Geopolitical instability and market uncertainty surrounding U.S. economic policy have increased the appeal of silver as a store of value. However, like gold, silver's rally faces resistance from the strength of the US dollar.
China's role and market outlook
The People's Bank of China's new gold purchases reflect broader global demand trends. Coupled with concerns about potential inflation stemming from President Trump's policies, gold and silver have solidified as preferred hedges against economic and geopolitical uncertainty.
Traders are now awaiting Wednesday's release of U.S. consumer inflation data for further clues about the Federal Reserve's trajectory. The interplay between geopolitical factors, China's economic behavior, and US policy shifts remains critical in shaping the outlook for both gold and silver prices.
