“Gold is caught in a tug-of-war between a weaker dollar, potential Fed easing, and geopolitical risks,” said Kelvin Wong, senior market analyst at OANDA Asia Pacific.
Former President Trump’s decision to delay the imposition of 50% tariffs on European Union imports until July 9 provided short-term relief to market nerves, but the broader trade outlook remains uncertain. The combination of muted dollar strength and cautious Fed guidance is keeping gold prices in check.
Silver Finds Support Near $33.22 but Faces Resistance
Silver (XAG/USD) mirrored gold’s consolidation, trading around $33.50 per ounce. The ongoing uncertainty surrounding U.S. fiscal policy and trade negotiations is a key backdrop.
The Congressional Budget Office projects the federal deficit will expand by $4 trillion over the next decade, driven by proposed tax cuts and spending initiatives. This has raised concerns over longer-term dollar stability, indirectly supporting silver’s price floor.
Investors Eye Key U.S. Data and Fed Signals
Market participants are now focusing on upcoming economic reports for guidance. Tuesday’s Durable Goods Orders and Consumer Confidence Index will provide short-term cues, while Wednesday’s FOMC minutes and Friday’s Personal Consumption Expenditures Price Index are expected to shape expectations for the Fed’s rate path.
As geopolitical tensions persist and economic signals remain mixed, gold and silver prices are likely to stay range-bound, supported by safe-haven demand but constrained by limited bullish momentum.
