Emre Yumlu 
Global precious metals markets entered the week with strong momentum as shifting expectations around the Federal Reserve’s monetary policy fueled renewed buying interest. Gold continued to trade just below the seven-week high it reached on Thursday, while silver approached record levels, becoming one of the standout performers in the commodities space.
Gold Maintains Its Weekly Uptrend
Spot gold slipped to 4,270.89 dollars per ounce on Friday morning, marking a daily decline of 0.3 percent. Despite this modest pullback, the metal remains on track to close the week with a solid 1.8 percent gain. The primary driver behind gold’s performance has been the market’s interpretation of the Fed’s latest rate cut as more dovish than previously expected.
The persistent weakness of the US dollar—now declining for a third consecutive week—has also strengthened gold’s appeal. A softer dollar typically lowers the cost of gold for buyers using other currencies, broadening investment demand.
Market Outlook After the Fed’s Decision
The Federal Reserve delivered its third 25-basis-point rate cut of the year on Wednesday, continuing its gradual shift toward a looser policy stance. Although the decision was not unanimous, signaling uncertainty about the economic outlook, Chair Jerome Powell’s softer tone in the post-meeting press conference was perceived as supportive by investors.
Fed officials emphasized that future rate cuts will depend on clearer signs of easing inflation and potential weakening in the labor market. The sharp rise in jobless claims last week was noted, but policymakers did not view it as an immediate trend reversal.
Given that gold carries no interest yield, it tends to benefit during periods of declining rates. As a result, market participants are closely watching the upcoming US nonfarm payrolls report for further clues on economic conditions.
Silver Tests Historic Levels
Silver delivered the most striking move of the week. After hitting an all-time high of 64.31 dollars on Thursday, the metal stabilized around 63.57 dollars on Friday morning. Silver is on pace for a weekly gain of 9.2 percent, adding to its impressive rally this year.
The metal’s surge has been supported by robust industrial demand, shrinking inventories, its addition to the US critical minerals list, rising ETF inflows, and increased physical purchases.
Ajay Kedia, Director at Kedia Commodities in Mumbai, highlighted the strong technical setup, noting that the breakout of a rounded-bottom formation could potentially push prices toward the 75-dollar level.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.