He noted that the demand for gold is being bolstered by “a blend of risk aversion and a recalibration of monetary policy expectations.”

Cooling Inflation Strengthens Fed Cut Bets

The Producer Price Index (PPI) rose just 0.1% in May, down from a 0.2% decline in April, signaling persistent disinflationary trends.

Combined with soft consumer price data, markets are now pricing in a 55-basis-point rate cut by the Federal Reserve in 2025, likely starting in September.

U.S. Treasury yields retreated, and the Dollar Index (DXY) hovered near a three-month low, supporting non-yielding gold.

Silver Consolidates Below Breakout Point

Silver (XAG/USD) is trading at $36.30, having slipped to an intraday low of $35.98. The metal is consolidating within a symmetrical triangle pattern, suggesting price compression as traders await a directional breakout.

While gold has surged on haven flows, silver’s upside remains capped by lingering concerns around industrial demand and global manufacturing trends.