Fed Policy in Focus
Investors are watching closely for signals from Fed Chair Jerome Powell’s press conference on Wednesday, where markets expect a more dovish tone amid slowing economic momentum. The Richmond Manufacturing Index and CB Consumer Confidence data due today will offer early clues on the health of the US economy, with consumer sentiment projected to edge down to 93.4 from 94.2.
Tomorrow’s Pending Home Sales data, forecast at 1.7% versus 4.0% previously, could further shape expectations about the Fed’s policy path.
Analysts at HSBC noted that “the Fed remains under pressure to strike a balance between curbing inflation and avoiding an unnecessary slowdown,” adding that dovish commentary could extend the rally in defensive assets like gold and silver.
Broader Market Outlook
Beyond the Fed, central banks in Europe and Japan are also expected to maintain policy stability, while improving signs of US–China trade cooperation have helped limit volatility.
Officials from both nations reportedly finalized the framework of a trade agreement ahead of a meeting between Presidents Trump and Xi later this week, an event markets hope will de-escalate tensions that have weighed on global trade flows.
Gold’s resilience this week reflects renewed hedging against macro uncertainty, while silver’s correlation with industrial demand remains a key focus. With traders balancing optimism over trade with caution ahead of policy shifts, both metals appear poised for moderate upside, contingent on the Fed’s tone and whether easing inflation expectations translate into sustained rate cuts through year-end.