The combination of Fed signals and uneven US economic data continues to underpin gold’s appeal as monetary conditions loosen.
Geopolitical Uncertainty Supports Defensive Flows
Persistent geopolitical tensions are sustaining flows into defensive assets, including gold and silver. Negotiators involved in key global discussions have offered conflicting updates, underscoring the lack of a clear resolution.
The uncertainty has kept risk appetite contained, with institutional allocation data showing a recent stabilization in gold ETF holdings after several weeks of outflows.
Silver is moving in tandem, benefiting from the same shift in positioning as investors look for assets resilient to political and market volatility. Analysts note that safe-haven demand strengthens when geopolitical ambiguity intersects with expectations of softer monetary policy.
Dollar Recovery Does Not Alter Broader Trend
A modest rebound in the US dollar limited near-term upside in precious metals but did not alter the broader trajectory. With no major US data scheduled, price action remains driven by sentiment around Fed policy and global risk conditions rather than new macro inputs.
Analysts say the fundamental setup remains intact: slowing pockets of economic activity, rising odds of Fed easing, and persistent geopolitical uncertainty. Together, these factors support a constructive outlook for both gold and silver as markets position for a potentially more accommodative policy cycle.
