Gold (XAU) Silver (XAG) Daily Forecast: Metals Hold Ground as CPI, FOMC Loom…

“The market is re-pricing risk in light of potential trade disruptions,” said Caroline Bain, chief commodities economist at Capital Economics. “This uncertainty is clearly benefiting bullion.”

Adding to the bullish tone, traders are now factoring in as many as four rate cuts by the Federal Reserve in 2025, with a strong chance of the first cut arriving as early as June. This sentiment has pressured the U.S. dollar and Treasury yields, both of which typically move inversely to gold and silver.

As a result, non-yielding metals like gold and silver are regaining appeal. Silver’s break above $30.00 is especially notable, suggesting broad-based support for precious metals in the current macro climate.

Fed Caution Moderates Rally Momentum

Despite market optimism, Federal Reserve officials continue to strike a cautious tone. Fed Governor Adriana Kugler reaffirmed the central bank’s commitment to its 2% inflation target, while Chicago Fed President Austan Goolsbee warned that prolonged trade disruptions could reignite inflation pressures.

These statements have tempered expectations for immediate aggressive policy easing, though they haven’t reversed the broader bullish trend for metals.

Investors now look ahead to the FOMC meeting minutes on Wednesday, followed by U.S. CPI and PPI data later in the week to better assess the timing and scale of policy shifts.