“Gold’s recent rebound reflects temporary relief,” said a senior commodities analyst at a leading bank. “However, with the dollar gaining traction from solid data, upside momentum is capped.”

Despite this, traders continue to eye the Federal Reserve’s next steps. Markets are pricing in at least two 25-basis-point rate cuts by year-end, banking on easing inflationary pressures and a gradual policy pivot. Yet, the dollar’s resilience, buoyed by positive economic indicators, continues to weigh on bullion.

Cautious Optimism Ahead of Key Economic Releases

Investors are bracing for pivotal US economic data later this week, including the FOMC meeting minutes, Q1 GDP revisions, and the Personal Consumption Expenditures (PCE) Price Index. These reports will likely shape the market’s expectations for Fed policy moves and inflation trends, adding a layer of caution to current gold and silver trades.

Meanwhile, geopolitical tensions and fiscal concerns persist, subtly supporting safe-haven demand. However, the solid US data and improved market sentiment limit the precious metals’ near-term rally potential.

Overall, gold and silver remain in a tug-of-war between safe-haven demand and a firmer dollar driven by resilient economic data.

Short-Term Forecast

Gold and silver prices face near-term pressure amid strong U.S. data and dollar resilience. Key resistance levels loom, with potential corrections toward $3,286 for gold and $32.87 for silver.