Investors are currently keenly waiting for Friday's US Personal Consumption Expense (PCE) Price Index Report. This provides clues on inflation and affects the Federal Reserve's attitude towards interest rates.
If the data shows cooling inflation, it could promote expectations for interest rate reductions and raise gold prices. Until then, gold could be traded within tough limits, as traders place importance on economic concerns about market sentiment.
Silver is below $32 amid economic uncertainty
Silver (Xag/USD) is trading at $31.76 after touching the daily low of $31.54. Like gold, silver is experiencing sales pressure as investors turn to riskier assets in bullish stock markets.
However, continued economic uncertainty and speculation about potential Federal Reserve rate cuts have hampered the sharp decline.
Important economic events to note
Traders will focus on the US PCE price index scheduled for Friday, which could affect the Fed's interest rate decisions. Other major economic reports this week include fourth quarter GDP, durable goods orders and weekly unemployment claims.
If the data supports a weaker economic outlook, it could increase the odds of interest rate reductions and provide support for both gold and silver.
