Despite these tailwinds, a modest recovery in US stocks and a slightly stronger US dollar limits additional gold profits. Technical indicators suggest that metals can be over-acquired in the short term, and bring some attention among traders. However, analysts note that as long as economic uncertainty and Dovish Fed policies persist, gold-price DIPs may offer purchase opportunities.
Silver strengthens demand for safe shelters
Silver (Xag/USD) holds the company at $32.25, following an intraday high of $32.42. The metal benefits from lower US Treasury yields and growing expectations for a reduction in Fed rates, making non-rare assets like silver more attractive.
Concerns over global trade instability have also driven the safe haven demand for silver. But like gold, silver's profits are facing resistance due to a slight recovery in the US dollar and the strength of the stock market.
Nevertheless, analysts are even more upside down when market uncertainty continues.
Market focus shifts to US economic data
Investors are closely watching Friday's non-farm payroll (NFP) data, particularly the US employment report, and in particular the upcoming employment report, to further clarify the Fed's financial policy stance.
Additionally, the first weekly unemployment claims data on Thursday provides further insight into the labour market. A weaker than expected report could bolster cases for further interest rate cuts and could add fuel to gold and silver gatherings.
