The US Federal Reserve’s economic signals are causing gold and silver prices to shift. Following recent testimony from Fed Chair Jerome Powell, markets are bracing for interest rate cuts to be postponed. This has lowered the value of precious metals. Powell stated that even if inflation has decreased, it remains too high for policy changes to occur immediately. Because of the uncertainty, investors are closely monitoring economic data. Gold is stuck around $2400, but silver is having difficulty sticking around $31.
Tariff Threats Add Fuel to the Fire
Global trade tensions are complicating matters even further. The Trump administration’s recent plan to raise tariffs on Chinese batteries, electronics, and electric vehicles might spark retaliation and reignite trade tensions. In the past, this type of uncertainty has prompted investors to seek safe-haven investments such as gold. People who invest in precious metals regard them as a hedge against global and economic volatility. If tensions rise, demand may increase even more.
Technical Indicators Signal Mixed Momentum
From a technical standpoint, gold is approaching significant resistance at 2450 dollars. If it breaks above, the next target could be 2500, but in the medium term, it is likely to remain unchanged. According to market analysts, silver is expected to go below 31.20, but it may find support near 30.40.
Investors should pay close attention to the next round of inflation statistics and the Fed’s response. As economic and geopolitical winds strengthen in the second half of 2025, gold and silver remain important to monitor.
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