The move followed policy shifts aimed at easing trade restrictions—most notably the U.S. administration’s decision to delay auto tariff requirements by two years. This decision lifted broader market sentiment, encouraging a rotation into risk assets and away from gold and silver.

Fed Rate Cut Bets Grow After Weak U.S. Data

Despite short-term weakness, gold continues to find support from mounting expectations that the Federal Reserve could soon begin easing policy. The latest JOLTS report showed U.S. job openings fell to 7.19 million in March, the lowest since September 2024.

Meanwhile, consumer confidence slumped to 86.0, its weakest reading in nearly five years, with the Present Situation Index at 133.5 and the Expectations Index dropping sharply to 54.4.

These soft data points have reinforced expectations for rate cuts, with markets now pricing in a 56.8% chance of a reduction in the upcoming policy cycle. Lower rates typically benefit non-yielding assets like gold and silver, which don’t offer interest but serve as a store of value during economic uncertainty.

Geopolitical Tensions Provide Underlying Support

Although trade optimism has curbed safe-haven flows, persistent geopolitical tensions—particularly in Eastern Europe—continue to provide a supportive backdrop.

While not the primary driver this week, these risks have kept downside in precious metals contained.