The Federal Open Market Committee (FOMC) begins its two-day policy meeting today, with a decision expected Wednesday. While no immediate policy changes are anticipated, traders are keenly focused on Chair Jerome Powell’s forward guidance, especially in light of tariff-related inflation risks.
Geopolitical Uncertainty Boosts Safe-Haven Flows
Increased tensions in the Middle East, particularly following strikes near the Strait of Hormuz and concerns over energy infrastructure, have revived safe-haven flows into gold and silver. Though the situation remains fluid, the proximity of these developments to vital shipping lanes has stoked investor caution.
On Monday, three oil tankers reportedly caught fire in the Gulf of Oman. While investigations are ongoing, the incident drew parallels to the 2019 tanker attacks and triggered risk aversion across Asian equity markets. Gold, long considered a geopolitical hedge, responded accordingly.
Silver (XAG/USD), meanwhile, mirrored gold’s strength, rising toward $36.50. The metal briefly touched $36.4955 before stabilizing.
Short-Term Forecast
Gold holds above $3,373 trendline support as bulls eye $3,404. Silver consolidates near $36.64, with breakout potential toward $36.88 if $36.12 support holds. Momentum remains neutral.
