Kremlin spokesperson Dmitry Peskov confirmed receiving Ukraine’s response to peace talks in Istanbul, while the White House announced a tentative ceasefire proposal from Israel, though its acceptance remains uncertain.

Fed’s Inflation Data and Rate Cut Prospects Shape Gold’s Path

Market participants remained cautious ahead of Friday’s US Personal Consumption Expenditure (PCE) Price Index, the Federal Reserve’s preferred inflation gauge. A cooling in inflation could raise expectations for interest rate cuts, potentially weakening the dollar and lifting gold.

Conversely, stronger inflation data could reinforce a hawkish Fed stance, strengthening the dollar and capping gold’s upside. Federal Reserve minutes revealed a “wait-and-see” approach, with policymakers balancing risks to inflation and employment.

Chicago Fed President Austan Goolsbee and San Francisco Fed President Mary Daly suggested two potential rate cuts this year, contingent on continued disinflation and labor market resilience.

Dallas Fed President Lorie Logan emphasized balanced risks, while Fed Chair Jerome Powell reiterated that future rate moves hinge on incoming data.

Silver Holds Ground as Gold Struggles for Direction

Meanwhile, silver (XAG/USD) prices traded steadily near $33.20, supported by underlying geopolitical uncertainty and consolidation patterns. The market’s focus remains split between inflation data and global tensions, keeping silver’s technical levels in play.