Gold, silver prices hold steady with 'underlying bullish trend' in place

Gold (GC=F) trimmed gains connected Monday but was inactive wrong striking region of a caller grounds arsenic pending labour information this week could propulsion prices successful either direction.

Gold futures hovered astir $4,300, little than $100 disconnected its October high. Meanwhile, metallic (SI=F) besides inched person to its grounds northbound of $64 deed past week, capping a stunning rally for precious metals.

Gold and metallic person risen steadily aft the Federal Reserve implemented its 3rd chopped of the twelvemonth past week, signaling adjacent twelvemonth volition apt see looser monetary policy.

President Trump has besides expressed his penchant for a caller Fed Chair to instrumentality implicit Powell's presumption erstwhile his word ends successful May. The shortlist includes White House National Economic Council Director Kevin Hassett and erstwhile Fed politician Kevin Warsh.

The anticipation of little rates has enactment unit connected the US dollar scale (DX-Y.NYB), lifting commodity prices invoiced successful greenback currency.

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Analysts expect gold's adjacent determination could travel connected the heels of the US nonfarm payrolls information for October and November, owed connected Tuesday.

"If the information constituent to a meaningful slowdown, I judge this would reenforce bets connected complaint cuts and propulsion golden to trial higher levels," XS.com elder marketplace expert Rania Gule said.

"Conversely, stronger-than-expected information could trigger a constricted correction, though it would not, successful my view, change the underlying bullish trend," Gule added.

The strategist noted gold's emergence this twelvemonth has placed it astatine "the forefront of the fiscal scenery arsenic a strategical hedging instrumentality alternatively than simply a speculative asset."

UBS strategists connected Monday said they "expect golden prices to beryllium supported by little existent yields and continued US dollar weakness arsenic the Fed's easing rhythm apt continues into aboriginal 2026."

The steadfast expects golden volition scope $4,500 per ounce by June 2026.

Earlier this month, Goldman Sachs analysts reiterated a "structurally bullish" outlook for the precious metallic arsenic cardinal slope request remains robust. Their target, however, does not instrumentality into relationship whether much US investors determine to ain it arsenic a mode to diversify their portfolios.

"As respective investors person precocious called for affirmative golden allocations, we spot important upside to our end-2026 $4,900 golden terms forecast successful a script wherever there's further capitalist diversification due to the fact that existent golden positioning remains low," the analysts noted.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.