This “higher-for-longer” stance dampens demand for non-yielding assets, such as gold. “The Fed remains committed to keeping policy tight until inflation is sustainably at 2%,” the FOMC noted. This shift in tone pushed real yields higher and pressured precious metals across the board.
Silver Tracks Gold Lower, Finds Support Near $35.60
Silver (XAG/USD) mirrored gold’s weakness, dipping to an intraday low of $35.66 before stabilizing near $35.63. Despite the Fed-driven pressure, silver’s downside was limited by broader risk aversion and continued demand for safe-haven assets.
Technical structure remains supported by the 50-day EMA and higher-low formations, while buyers appear to be stepping in at key levels, anticipating a rebound should uncertainty deepen across global markets.
Geopolitical and Trade Risks Underpin Safe-Haven Flows
Despite monetary policy headwinds, gold and silver continue to benefit from global uncertainty. Geopolitical tensions in key regions and trade policy risks—especially the potential for new U.S. tariffs ahead of the July 9 deadline—are fueling cautious positioning across equities and commodities.
Investors remain sensitive to any escalation in global tensions or disruptions in trade flows, which could reignite demand for metals. “We’re in a holding pattern, but safe-haven appetite could return quickly if headlines worsen,” noted a Hong Kong-based metals trader.
The U.S. Dollar Index slipped modestly following the Fed’s policy announcement, offering minor support to gold and silver. A weaker greenback typically benefits dollar-denominated assets, especially when paired with a broad risk-off tone seen in global equities.
