The producer price index (PPI) was stable, with the annual rate falling from 3.7% to 3.2%, strengthening expectations for a lenient monetary policy.
Silver is stable amidst the volatility of the market
Silver (Xag/USD) is trading at $33.91 after soaking it in $33.67 early in the session. Metals remain well supported by economic uncertainty and potential Fed policy changes, but the stronger US dollar limits the upward movement.
Investors continue to use silver as a hedge against inflation, but the lack of a clear policy signal has kept prices in a tight range.
Market focus shifts to major resistance and Fed meetings
Gold remains below $3,000 as the US dollar prolongs its recovery and slows down its upward momentum. A possible 30-day ceasefire between Russia and Ukraine and reporting efforts to prevent US government shutdowns have eased market uncertainty and reduced demand for safe assets.
Traders are watching the Michigan Consumer Sentiment Index and upcoming Federal Open Market Committee (FOMC) meetings for clues on policy direction. A disruptive shift from the Fed could push gold to more than $3,000, bolstering the long-term bullish outlook.
Short-term forecast
Gold remains bullish at over $2,970, with resistance at $2,993. The breakout targets $3,013, but the failure can be seen at $2,956. Traders watch directional FOMC signals.
