These dovish bets have bolstered demand for gold, which benefits from lower yields due to its non-interest-bearing nature.
Silver Tracks Gold, Trading Near $32.77 on Weaker Dollar
Silver (XAG/USD) mirrored gold’s strength, hovering around $32.70 after hitting an intraday high of $32.86. A falling U.S. Dollar Index, now near a three-year low, has made dollar-denominated metals more appealing to global investors.
Despite a more positive global equity tone, silver continues to find support from both safe-haven flows and solid industrial demand.
Geopolitical Developments and Economic Data in Focus
While geopolitical sentiment has improved—following de-escalation signals in Eastern Europe and softer U.S. rhetoric on trade and Fed policy—investors remain cautious.
Markets reacted positively to President Trump’s apparent reversal on removing Fed Chair Powell and to constructive dialogue around U.S.-China tariffs. However, gold’s safe-haven appeal endures amid fiscal uncertainties and questions over the Fed’s independence.
Looking ahead, flash PMI releases across major economies are expected to shape sentiment. Any disappointing data could accelerate calls for easing and push gold and silver prices higher. Despite reduced immediate risk aversion, both metals remain strategically positioned as hedges against deeper economic and monetary instability.
