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Gold and silver are holding firm as the dollar stays on the back foot, with renewed U.S.-Iran tensions and a fresh round of inflation data keeping traders locked in on where interest rates go next.

Gold and silver pushed higher as the U.

Gold and silver remain caught between conflicting forces: dovish Fed signals versus resilient labor data, both feeding uncertainty ahead of next week's CPI and PPI releases. Meanwhile, escalating Strait of Hormuz tensions continue underpinning safe-haven demand. Steady central bank buying and strong ETF inflows reinforce structural support, even as near-term direction hinges heavily on incoming inflation data and geopolitical developments.

Gold and silver clawed back ground on Thursday as the dollar and Treasury yields softened, giving both metals room to breathe. Traders, meanwhile, are keeping one eye on Friday's U.S. nonfarm payrolls report, widely seen as the next real catalyst for the Fed's policy path

Gold slid to a three-week low on Wednesday, pressured by a sharp escalation in Middle East tensions that pushed oil prices higher and revived fears around inflation and rate hikes. With markets now bracing for upcoming U.S. jobs data, investors have grown more cautious.

Gold capped off August with a 9.4% gain, while silver surged 15% — the strongest monthly performance for gold, both in percentage terms and outright dollar gains, since February.

Gold surged toward $4,700 last week — its highest since mid-May — on fears of dollar debasement after the US Treasury doubled its bond buyback programme. The rally reversed sharply Friday when Fed Chair Kevin Warsh's hawkish Jackson Hole speech pushed September rate-hike odds from 35% to 57%, sending gold back to $4,450.

Gold and silver edged higher this week as lingering fears around currency debasement kept a bid under precious metals, even as markets held their breath for Federal Reserve Chair Kevin Warsh's remarks.

Gold and silver are holding steady above $4600 and $68, respectively, with a bullish tilt, as markets continue digesting the U.S. Treasury's move to double the size of its liquidity support buyback operations for longer-dated notes and bonds—a decision that pushed the dollar to an over three-month low last week.

Gold and silver pulled back on Tuesday, cooling off after touching their highest levels in more than three months. Traders are now looking ahead to the upcoming U.S. inflation print and a speech later this week from Federal Reserve Chair Kevin Warsh.