“Gold remains the default hedge in times of macro disruption,” noted a London-based commodities strategist, adding that “escalating trade policies are amplifying uncertainty in global supply chains.”

Fed Signals Inflation Concern, but Cuts Not Imminent

The Federal Reserve’s June meeting minutes, released on Wednesday, showed that most policymakers remain concerned about inflation driven by tariffs. However, only “a couple” of officials favored cutting rates as early as July. Treasury yields softened in response, adding to gold’s tailwinds.

According to the CME FedWatch Tool, traders now see a 68% chance of at least one rate cut by December, up from 60% earlier this week. Lower interest rates reduce the opportunity cost of holding non-yielding assets, such as gold, making the metal more attractive.

Silver Tracks Gold Gains but Faces Overhead Resistance

Silver (XAG/USD) also caught a bid, trading near $31.00, although gains were more restrained amid broader concerns about industrial demand. Technical analysts point to resistance near the $31.25–$31.50 region, with support forming at $30.10.

“Silver’s dual role as an industrial and monetary metal keeps it vulnerable to both economic softness and safe-haven flows,” said a New York-based metals analyst.

Investors will be watching U.S. weekly jobless claims data and scheduled remarks from several Fed officials for further policy cues. A stronger labor market could delay easing, capping near-term upside in precious metals.