“Gold is holding firm as a hedge against uncertainty—both economic and geopolitical,” said a commodities strategist at ING.

The broader macro backdrop remains mixed. Although U.S. economic data has reduced immediate recession fears, traders are still pricing in volatility around the Fed’s tone on interest rates.

Silver Trades at $33.10, Tracks Gold’s Strength

Silver (XAG/USD) is also benefitting from the risk-off tone, trading at $33.10 after reaching a session high of $33.12. The metal continues to mirror gold’s price trajectory, supported by technical strength and safe-haven flows.

Both metals are responding to a confluence of forces: easing fears of an imminent U.S. recession, persistent geopolitical tensions, and uncertainty around central bank policy.

ISM and Jobs Data Ease Recession Fears, but Fed Still in Focus

Economic data from the U.S. has shown improvement. The Institute for Supply Management (ISM) reported its services PMI rose to 51.6 in April, up from 50.8 in March, indicating steady expansion. Meanwhile, last week’s employment report revealed stronger-than-expected job growth, adding to optimism around the U.S. economy.

Still, the market remains cautious. “While the data points are supportive of growth, uncertainty around inflation and the Fed’s next steps keeps investors defensive,” said a senior economist at Capital Economics.