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“It continues to be the safe-haven demand driven by concerns around tariffs, trade, and global instability,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
Fed Policy Outlook Remains Central to Gold’s Momentum
The Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation measure—rose 0.4% in February, slightly above the 0.3% consensus and mirroring January’s print. The data, while mildly hotter, is unlikely to derail dovish expectations.
Markets are now pricing in 63 basis points of rate cuts by the end of 2025, with the first reduction anticipated in July, according to CME FedWatch. The Fed has kept interest rates steady so far this year after delivering three cuts in 2024, and policymakers have signaled openness to a 50-basis point cut later this year should inflation continue to cool.
Low interest rates typically boost non-yielding assets like gold by reducing the opportunity cost of holding them.
Silver Tracks Gold, Breaks Above $34.00
Silver prices also rallied, hitting $34.13 per ounce—the highest in over a year—as the broader metals complex gained strength. Technical indicators show silver clearing resistance near $33.93, with analysts now eyeing the $35.07 zone.
Silver’s dual role as a precious and industrial metal positions it well amid improving global manufacturing sentiment.
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