The Federal Reserve’s hawkish tone, pushed by sturdy labor knowledge and protracted inflation, dampened gold’s fourth-quarter rally. Expectations of fewer rate of interest cuts in 2025 have elevated the strain.
Analysts counsel that potential commerce conflicts or tariffs below the incoming Trump administration may increase demand for gold as a protected haven.
Silver faces challenges regardless of favorable situations
Silver (XAG/USD), buying and selling at $28.87, stays below strain and shedding floor attributable to weak industrial demand and a powerful US greenback.
Whereas silver typically advantages from the identical elements that assist gold, its dependence on financial progress makes it extra susceptible to market sentiment.
Federal Reserve coverage and subdued industrial demand have restricted silver’s upside, at the same time as geopolitical uncertainties stay.
The weak US greenback and authorities bond yields are boosting demand for gold
The US Greenback Index (DXY) stays subdued at 108.00, whereas Treasury yields fell on Monday, with the 2-year and 10-year yields at 4.24% and 4.53% respectively.