Fed Governor Christopher Waller’s recent comments that cuts remain possible despite inflation risks reinforced this view, pushing gold higher as the dollar weakened.

Silver Follows Gold’s Lead, Approaches Key Resistance

Silver (XAG/USD) tracked gold’s gains, advancing to $33.22 per ounce as of late Asian trade. The metal’s rally mirrored gold’s, benefiting from a subdued dollar and safe-haven flows.

The metal’s strength is underpinned by industrial demand, particularly amid signs of stabilization in global manufacturing, as well as investor hedging against geopolitical uncertainty.

Investors Brace for Powell’s Speech and Key US Data

Traders remain cautious ahead of critical US economic indicators and Fed Chair Jerome Powell’s remarks. The ISM Manufacturing PMI, due later today, could provide fresh insight into the health of the economy, while Powell’s comments may clarify the Fed’s next moves.

Markets are pricing in nearly a 60% chance of a rate cut by September, with a second cut possible in December.

Overall, the upward momentum of gold and silver reflects a confluence of factors: a softer dollar, cooling inflation, and persistent geopolitical risks, including tensions in Eastern Europe and Asia. As global uncertainties mount, precious metals remain a popular choice for investors seeking safety and diversification.