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“We’re seeing increasing odds for a dovish Fed pivot,” said a Hong Kong-based metals analyst. “With real yields easing and the dollar pulling back, gold is positioning for another leg higher.”
Recent data from the U.S. Commerce Department showed retail sales flatlining in April, while consumer price growth slowed to 3.4% year-over-year, down from 3.5% in March. These figures, alongside softening labor market signals, have supported the case for monetary easing, boosting gold’s appeal as a macro hedge.
Silver Hits $33.18 as Industrial Demand, Volatility Drive Flows
Silver (XAG/USD) also advanced, trading at $33.16 after reaching an intraday high of $33.18. The metal continues to benefit from gold’s bullish tailwinds, but its dual role as a store of value and industrial input adds depth to the rally.
Concerns about global manufacturing growth and supply chain fragility have prompted renewed interest in silver, particularly from institutional buyers hedging against economic turbulence.
Fiscal Strain and Trade Policy Uncertainty Stoke Safe-Haven Flows
Market anxiety deepened after Moody’s downgraded the U.S. credit outlook last week, citing deficits projected to exceed 6.2% of GDP over the next two years. Additionally, the Trump administration’s proposed tax package, which analysts estimate could raise U.S. debt by up to $5 trillion, has added to fiscal fragility.
Meanwhile, escalating trade tensions between the U.S. and China over semiconductor exports and industrial policy have reignited fears of supply shocks and growth disruptions.
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