This divergence within the Fed has left markets uncertain. While futures still price in roughly 50 basis points of easing by year-end, the timing remains murky. “The labor market is softening, but the Fed hasn’t given investors a unified roadmap,” said a commodities strategist at ANZ.
Silver Tracks Gold Amid Trade Jitters and Rate Doubts
Silver traded flat around $38.28, echoing gold’s cautious tone. While dovish Fed commentary and geopolitical trade concerns added a layer of support, stronger US macro data dampened sentiment.
Weekly initial jobless claims fell to 221,000—the lowest in three months—while June retail sales rebounded 0.6%, topping expectations.
These figures suggest resilient consumer activity and labor strength, reducing the urgency for policy easing and limiting safe-haven demand for precious metals.
Tariff Announcements Inject Trade Risk, Lift Safe-Haven Appeal
Tensions around global trade escalated after tariff proposals targeting over 150 countries were confirmed, including a 50% levy on copper imports. The move sparked fears of renewed inflationary pressures and broader supply chain disruptions.
“Tariffs are inflationary by nature and complicate the Fed’s balancing act,” said an economist at ING. While the broader market remains in a risk-on mood, safe-haven flows into gold have picked up marginally in response to these developments.