“Market participants are positioning around anticipated Federal Reserve rate cuts, which continue to underpin demand for non-yielding assets like gold,” said a senior commodities strategist at ANZ Research. Futures markets are pricing in a 66% probability of a rate cut by September, despite last week’s stronger-than-expected U.S. jobs report.
Tariff Policy and US-China Trade Uncertainty Reinforce Safe-Haven Demand
Adding to gold’s momentum was Tuesday’s federal appeals court decision allowing the continuation of Trump-era tariffs—dubbed “Liberation Day” duties—which introduced fresh uncertainty into the global trade environment.
While Washington and Beijing have agreed to implement the Geneva Consensus framework, disputes over rare earths and critical minerals remain unresolved, casting a shadow over the optimism surrounding trade.
Silver Holds Steady as Traders Await U.S. CPI and PPI Reports
Silver prices mirrored gold’s trajectory, albeit with slightly more volatility. The metal dipped briefly to $36.48 in intraday trading but remained resilient.
Analysts suggest that silver’s dual role as both a precious and industrial metal could see more substantial tailwinds if risk sentiment stabilizes and demand from manufacturing sectors rebounds.
Market focus now turns to U.S. inflation data, which will likely shape the next leg of price action. The Consumer Price Index (CPI) report is scheduled for release later Wednesday, followed by Thursday’s Producer Price Index (PPI). Any signs of easing inflation could reinforce the case for the Fed to ease and push gold toward new highs.
