Investor sentiment has shifted towards gold and other non-yielding assets as US Treasury bond yields decline. The decline of the US dollar is also fueling the upward momentum for gold, despite concerns about prolonged high interest rates from the Federal Reserve.
Despite this bullish trend, expectations of high interest rates may limit short-term gains. Markets are currently pricing in a 38 basis point rate cut by December, but Fed officials remain cautious on inflation risks.
Silver prices have gained ground due to risk-off sentiment and a weaker US dollar. Investors are diversifying their portfolios with safe-haven metals amid economic uncertainty. However, the uncertainty about the Fed’s interest rate strategy is holding back a more significant rally for silver.
Source: https://www.fxempire.com/forecasts/article/gold-xau-silver-xag-daily-forecast-trade-war-fears-boost-safe-haven-demand-1498998