Dollar Slides, Boosting Bullion Appeal
The U.S. Dollar Index (DXY) fell to a three-year low, reducing the cost of dollar-denominated metals for international buyers. “Markets are increasingly pricing in structural risks—ranging from trade disruptions to long-term inflation—while continued central bank accumulation offers additional support,” said Yeap Jun Rong, strategist at IG.
The shift in currency sentiment comes as President Trump’s administration moves forward with broad-based tariff plans.
While exemptions were granted to some countries, the focus remains on China, where trade talks have stagnated. Beijing, in response, warned against bilateral deals that could undermine its position in ongoing negotiations.
Fed Uncertainty and Geopolitical Risk Shape Market Tone
Investors are also watching developments at the Federal Reserve, where speculation around leadership persists. The White House has reportedly revisited discussions about replacing Chair Jerome Powell, a move that would further complicate monetary policy signals at a time when inflation remains uneven and growth momentum fragile.
Meanwhile, geopolitical instability—particularly across Eastern Europe—is adding to the cautious mood in financial markets. Although a temporary ceasefire had been announced, reports of renewed conflict have raised doubts about any meaningful de-escalation in the near term.
Short-Term Forecast
Gold eyes $3,404 as bulls defend key support near $3,368; silver holds above $32.63 with upside capped at $33.11 unless volume confirms a breakout.
