In recent market maneuvers, gold has recovered its intraday losses and turned positive despite facing several headwinds. The precious metal's resilience comes amidst the Federal Reserve's continued stance on holding interest rates 'higher for longer.' Meanwhile, silver prices are reflecting a strongly bullish momentum, supported by a 14-day Relative Strength Index (RSI) oscillating between the 60.00-80.00 range. However, optimism surrounding potential peace between Russia and Ukraine is expected to cap silver’s upward potential.
US President Donald Trump's tariff concerns have eased, with Trump nominating Howard Lutnick as Commerce Secretary. Lutnick announced that the President is poised to act on reciprocal tariffs by April 1, potentially impacting international trade dynamics. Meanwhile, the Reserve Bank of Australia (RBA) cut interest rates as anticipated, with Michele Bullock noting that higher interest rates have been effective in slowing economic activity and curbing inflation.
A daily close above $2,910 could set gold on a path to achieve a new all-time high this week. This potential rise is bolstered by Fed Governor Michelle Bowman's statement expressing a desire for "greater confidence" in ongoing inflation reduction before considering any policy changes. Similarly, the 20-day Exponential Moving Average (EMA) for silver has been trending higher, trading around $31.70, indicating a positive outlook for the metal.
Silver faces key levels at both ends of its trading spectrum: the October 31 high of $33.90 serves as a crucial resistance point, while the February 11 low of $31.26 provides significant support. These levels are pivotal as market participants assess the metal's trajectory amid fluctuating economic factors.
In the UK, the ILO Unemployment Change remained steady at 4.4% for the three months leading to December, signaling stability in the labor market despite broader economic uncertainties. Across the Atlantic, Statistics Canada is set to release its latest inflation report for January, derived from Consumer Price Index (CPI) data. This report will offer further insight into the inflationary pressures impacting the Canadian economy.
As global markets navigate these developments, investors continue to weigh geopolitical factors and economic indicators in their strategic decisions. The easing of tariff fears under President Trump and the anticipated actions of Commerce Secretary nominee Howard Lutnick may influence future trade relations and economic stability.