Gold and silver prices slid on Friday, losing ground despite a weaker US Dollar, as easing geopolitical tensions and renewed global trade optimism shifted market sentiment away from safe-haven assets.
🌍 Risk Appetite Grows Amid Diplomatic Breakthroughs
Gold (XAU/USD) fell below the $3,300 mark after hitting an intraday high of $3,328, reflecting waning investor demand for safety. The decline followed positive headlines, including a de-escalation in the Middle East and confirmation of a new US–China trade pact. Additional deals with South Korea, Vietnam, and the European Union are reportedly in progress, helping shift sentiment toward risk-on assets.
Adding to the positive tone, China agreed to resume exports of rare earth materials to the US—an important development that may lead to easing of US trade restrictions. This surge in global cooperation has reduced immediate economic uncertainty, eroding gold’s appeal as a crisis hedge.
💡 Inflation Data Adds Complexity to Fed Outlook
While the US Core PCE Price Index rose to 2.7% in May—above the previous month’s 2.6%—headline inflation met forecasts at 2.3%, suggesting gradual disinflation is still underway. University of Michigan consumer sentiment data also climbed to 60.7, reinforcing market confidence.
These signals, coupled with declining inflation expectations, reduce pressure on the Federal Reserve to act aggressively. Minneapolis Fed President Neel Kashkari reaffirmed projections for two rate cuts in 2025, while market pricing now anticipates roughly 64 basis points of easing by year-end.
Even though the US Dollar Index (DXY) remains weak near 97.28 and 10-year Treasury yields held steady at 4.24%, gold saw renewed selling pressure as traders rotated into equities and risk-based assets.
📊 Technical Breakdown
🟡 Gold (XAU/USD) Analysis
Daily Chart
Gold has broken beneath both the 50-day moving average and the lower edge of its ascending triangle pattern. If this bearish momentum continues, price may slide toward $3,150, with further downside risk toward the $3,000 psychological zone.
Key Levels to Watch
🔻 Support: $3,230 → $3,150 → $3,000
🔺 Resistance: $3,400 → $3,450
4-Hour Chart
The 4H chart shows consolidation near key support. A breakdown could confirm a broader correction, while a rebound may target $3,400 again.
⚪ Silver (XAG/USD) Analysis
Daily Chart
Silver is pulling back toward the $35 support zone after its recent breakout. This area may act as a new launchpad if bulls defend it strongly. The 50-day SMA around $34.20 adds technical reinforcement.
4-Hour Chart
Silver is showing early signs of bullish reversal above $35. A clean breakout above $37.30 would confirm upside continuation toward $38+.
💵 US Dollar Index (DXY) Outlook
Daily Chart
The DXY remains under pressure, breaking below key support. Failure to reclaim 100.50 keeps the bearish trend intact, with downside targets toward 94.50 and possibly 90.
4-Hour Chart
The index trades within a steep descending channel. A breakdown under 94.50 would likely accelerate the selloff.
✅ Summary
Gold and silver are under pressure despite dollar weakness as global calm and improved trade outlook reduce fear-driven demand. However, if upcoming inflation data surprises to the downside or geopolitical risks re-emerge, precious metals may regain momentum.
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