“Traders are increasingly positioning for a rate cut before year-end,” said one market strategist at a London-based brokerage. “Any dovish shift from the Fed tends to reduce the opportunity cost of holding non-yielding assets like gold.”
Silver mirrored gold’s cautious tone, slipping modestly as investors sought clarity on monetary policy. Despite its industrial use, silver’s dual role as both a safe-haven and growth-linked asset has made it sensitive to shifts in interest rate expectations.
The rally in precious metals lost traction after the US dollar rebounded from a two-week low. The move came as investors welcomed progress on the government funding deal, easing short-term fiscal concerns and restoring confidence across equity markets.
The stronger greenback, which often moves inversely to commodities, curbed foreign demand for metals.
“Dollar resilience is keeping gold and silver trapped in a narrow range,” said analysts at Saxo Bank, noting that improving global risk appetite has also reduced safe-haven demand.
Market Focus Turns to Upcoming Fed Speeches
Investors now await fresh policy signals from upcoming Federal Reserve remarks and key economic indicators later this week. Traders are watching for confirmation of whether rate cuts remain on the table amid lingering inflation risks.