Gold, Silver Ease as Strong Dollar Pressures Precious Metals Demand
Gold and silver prices edged lower on Thursday as stronger economic data supported the U.S. dollar and tempered expectations for near-term interest rate cuts, reducing demand for safe-haven assets.
Spot gold slipped modestly during early trading after recent highs, while silver saw mild volatility as traders locked in profits from recent gains. Analysts say the precious metals market remains sensitive to macroeconomic signals, particularly inflation data and central bank policy direction.
A firmer dollar typically weighs on gold and silver by making them more expensive for holders of other currencies. However, continued geopolitical uncertainty and steady central-bank gold purchases are helping limit deeper declines.
Market participants remain cautiously optimistic about the longer-term outlook. Strong physical demand in Asia, growing interest from institutional investors, and ongoing concerns about global debt levels continue to support precious metals.
Silver, which has both industrial and investment demand, is expected to remain more volatile than gold in the near term as traders balance economic growth expectations with safe-haven positioning.
Despite short-term fluctuations, analysts say gold and silver remain key assets for diversification in an uncertain global economic environment.