“Gold is caught between rising geopolitical premiums and a Federal Reserve that’s unwilling to ease aggressively,” said one commodities strategist at a global bank.
The Federal Reserve’s updated projections now anticipate just two rate cuts in 2024, followed by only 25-basis-point reductions in 2026 and 2027, reflecting persistent concerns over inflation. These expectations have kept the U.S. dollar near recent highs, reducing investor appetite for dollar-denominated assets like gold.
Silver Holds $36 but Lacks Momentum as Dollar Caps Gains
Silver followed gold’s path, trading around $36.00, after briefly dipping to $35.94 during the Asian session. Like gold, silver is facing dual pressure from stronger U.S. dollar flows and cautious market sentiment. The metal’s failure to reclaim levels above $36.30 suggests traders are hesitant to chase rallies without a more straightforward risk narrative.
Both metals are being pulled by two competing forces: rising geopolitical uncertainty and the Fed’s reluctance to pivot more dovishly. The result has been a lack of clear directional conviction in recent sessions.
Investors Await PMI Data and Risk Developments for Clarity
Investor focus is now shifting to Monday’s global flash PMI releases, which are expected to provide insight into economic momentum across the U.S., Europe, and Asia. Markets will also remain sensitive to ongoing Middle East developments, especially any signals that could widen regional conflict or impact energy flows.
Until then, analysts expect gold and silver to remain in tight ranges, with $3,340–$3,388 and $35.60–$36.45 seen as immediate support and resistance levels, respectively. The broader market remains defensively positioned, awaiting firmer macroeconomic or geopolitical catalysts.
