Gold and silver prices came under pressure during Tuesday’s Asian session as geopolitical developments and shifting market sentiment reduced demand for traditional safe-haven assets. Gold (XAU/USD) hovered near $3,209, while silver (XAG/USD) traded around $32.14 amid renewed optimism surrounding ceasefire talks between Russia and Ukraine.
Ceasefire Prospects Dampen Safe-Haven Appetite
News that Russia and Ukraine have agreed to enter ceasefire negotiations has prompted a shift toward risk-on sentiment in global markets. This has weakened the appeal of safe-haven assets, including gold and silver. However, gold has managed to hold above the key $3,200 level, buoyed by a softening U.S. dollar and growing expectations of monetary easing by the Federal Reserve.
The U.S. dollar continues to drift near a one-week low following last week’s softer-than-expected consumer inflation and retail sales data. Traders are now pricing in at least two interest rate cuts from the Fed in 2025.
“The Fed remains in a tough spot—soft data is building the case for easing, but officials are hesitant,” said a commodities analyst at KCM Research.
Silver Struggles to Maintain Momentum
Silver has mirrored gold’s cautious tone, trading near $32.14 after hitting an intraday low. Despite lingering uncertainty in global markets, the metal has failed to gain traction, with a firm U.S. dollar and easing geopolitical risk capping upside potential.
The broader tone remains hesitant, as investors weigh competing macroeconomic and geopolitical narratives.
Fed Commentary, Trade Sentiment in Focus
Market attention is now shifting to upcoming commentary from Federal Reserve officials, following Moody’s downgrade of the U.S. sovereign credit rating to “Aa1” last week. While the move raised questions about long-term fiscal sustainability, its immediate market impact was limited.
Atlanta Fed President Raphael Bostic and New York Fed President John Williams have both struck a cautious note. Bostic, in particular, suggested that only a single rate cut may be appropriate this year, reflecting continued concerns about inflation persistence.
At the same time, a more positive tone in global trade relations has tempered demand for safe-haven assets. With no major U.S. economic data scheduled for release on Tuesday, traders are likely to take their cues from FOMC speeches and potential geopolitical developments.
Technical Analysis: Gold and Silver Await Breakout Triggers
Gold remains range-bound near $3,209, struggling to overcome resistance at a descending trendline that has repeatedly capped gains this week. The 50-day exponential moving average (EMA) at $3,222 is acting as a strong technical ceiling, with lower highs continuing to weigh on bullish sentiment.
Support at $3,207 is holding for now, but a failure to break higher could see prices drift toward $3,180 or even $3,163. A decisive breakout above $3,252 would be needed to shift the momentum back in favor of bulls.
“Gold is like a ball bouncing under a low ceiling—it needs serious strength to break out. Otherwise, gravity takes over,” said one technical analyst.
Silver, meanwhile, is teetering at the lower boundary of a symmetrical triangle pattern, signaling fragile momentum. The metal continues to be squeezed between descending resistance and ascending support, with the 50-EMA at $32.37 capping recent rallies.
A confirmed close below $32.00 would likely trigger further downside toward $31.66 or even $31.43. The technical structure remains bearish, with lower highs in place since mid-May. Bulls would need to reclaim $32.29 to spark a more constructive outlook.
Outlook: Consolidation Persists Amid Cautious Sentiment
Gold and silver prices remain stuck in consolidation, with technical barriers limiting upside despite favorable conditions for monetary easing. With Fed rhetoric and global trade developments in the spotlight, traders are on high alert for potential breakout triggers. Until then, the path of least resistance for both metals may remain sideways or slightly lower.
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