“The break above $3,400 marks a clear shift in sentiment,” said Kelvin Wong, senior market analyst at OANDA. “But the market is pausing here, waiting for signals from the Fed. If we break above $3,500, it opens room for a more extended move.”
Geopolitical tensions, particularly in the Middle East, have contributed to safe-haven demand, though equity markets in Asia remained broadly resilient. This relative calm has capped gold’s upside for now. Meanwhile, the U.S. Dollar Index recovered modestly from recent lows, limiting further gains in non-yielding assets, such as gold.
Silver Holds Near $36.35 as Dollar Gains Cap Upside
Silver (XAG/USD) is trading at $36.29, just below its intraday high of $36.39, supported by similar safe-haven flows and dovish expectations from the Fed.
However, mild U.S. dollar strength and risk-on appetite in equity markets have weighed on momentum. Technical resistance at $36.52 remains a key barrier for bulls.
Market Eyes Fed for Cues on Rate Path
With the Federal Open Market Committee (FOMC) widely expected to leave interest rates unchanged, attention now turns to the language in the statement and updated economic projections.
The CME FedWatch Tool shows a 62% chance of a rate cut by September, a shift that could support gold and silver through the third quarter.
