Gold Stable, Silver Slips as U.S. Dollar Recovers on Housing Data
Gold prices remained steady near $2,660, while silver pulled back, reflecting market shifts amid rising U.S. dollar strength and geopolitical risks.
Gold prices (XAU/USD) remained stable during the European session, trading near $2,660, as investors digested weak U.S. economic data and rising geopolitical risks in the Middle East. Meanwhile, silver (XAG/USD) experienced a pullback, falling from $32.28 to $31.75. These movements reflect a growing risk-on sentiment among investors, driven by China’s economic stimulus, which has prompted a shift away from safe-haven assets like gold and silver.
However, ongoing Federal Reserve monetary easing expectations, coupled with heightened geopolitical risks, continue to support precious metals. With both gold and silver benefitting from a weaker U.S. dollar, further developments could lead to increased demand for these assets.
US Dollar Recovers Slightly Amid Strong New Home Sales Data
The U.S. Dollar Index (DXY) hovers around 100.78, recovering slightly from a low of 100.22, supported by stronger-than-expected New Home Sales data. Despite this recovery, weak economic indicators, such as the Richmond Manufacturing Index at -21 and Consumer Confidence falling to 98.7, have increased speculation of a 50 bps rate cut by the Federal Reserve in November.
Featured Partners (Ad)
Key Events from Wednesday:
- New Home Sales: 716K units, exceeding expectations of 699K.
- Durable Goods Orders: Below forecast, highlighting manufacturing weakness.
While the dollar shows resilience, it remains under pressure, with attention focused on upcoming Fed decisions.
Geopolitical Tensions and Their Impact on Precious Metals
On the geopolitical front, escalating tensions in the Middle East, particularly between Israel and Palestine, have increased demand for safe-haven assets like gold and silver. Reports of rising casualties in Gaza and Lebanon have heightened investor concerns about further instability in the region.
This uncertainty has bolstered precious metals, as investors seek security during times of conflict and political turmoil.
Additionally, the looming U.S. presidential election adds another layer of uncertainty, driving more investors toward assets like gold and silver. Political risks in the U.S. combined with global conflicts suggest that demand for precious metals will remain strong in the coming months.
What to Expect: Key Events to Watch
Looking ahead, traders are eyeing key events that could influence the U.S. dollar and, consequently, gold and silver prices.
On Thursday, September 26, the U.S. will release its Final GDP figures for Q2, with forecasts holding at 3.0%. This will be followed by Unemployment Claims, expected to rise slightly to 224K from 219K. Any surprises in these reports could shift market sentiment and impact the dollar's trajectory.
Additionally, Fed Chair Jerome Powell is scheduled to speak at the U.S. Treasury Market Conference in New York. His comments could provide further insights into the Fed’s rate cut strategy, which could significantly influence gold and silver prices moving forward. Augusta Precious Metals $0 (10 Years) $50,000 "Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings Goldco Vary $25,000 Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee Birch Gold Group Vary $10,000 Since 2003 BGG served over 32,000 customers. A+ rating with BBB, AAA from BCA & has multiple celebrity endorsementsExpand Details
Renowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.Expand Details
From Precious Metals IRAs to direct purchases of gold and silver, Goldco have helped thousands of Americans place over $2 Billion in gold and silver. TOP-RATED PRECIOUS METALS COMPANY Rated A+ by the Better Business Bureau Rated Triple A by Business Consumer Alliance Earned over 6,000+ 5-Star Customer Ratings Money.com 2024 Best Customer Service 2024 Inc. 5000 Regionals: Pacific Ranked #17 2024 Gold Stevie Award, Fastest Growing Company Inc. 5000 Award Recipient, 8+ YearsExpand Details
Birch Gold Group is a leading precious metals dealer established in 2003. They empower customers with education and prioritize customer satisfaction. Their experienced team offers gold, silver, and other metals for investment and IRAs. With a strong reputation (A+ BBB rating) and focus on personalized service, they aim to be your trusted partner in securing your financial future through precious metals.
Jerusalem Post Store
`; document.getElementById("linkPremium").innerHTML = cont; var divWithLink = document.getElementById("premium-link"); if (divWithLink !== null && divWithLink !== 'undefined') { divWithLink.style.border = "solid 1px #cb0f3e"; divWithLink.style.textAlign = "center"; divWithLink.style.marginBottom = "15px"; divWithLink.style.marginTop = "15px"; divWithLink.style.width = "100%"; divWithLink.style.backgroundColor = "#122952"; divWithLink.style.color = "#ffffff"; divWithLink.style.lineHeight = "1.5"; } } (function (v, i) { });