Gold and Silver Gain on Softer Dollar and Inflation News
After notching modest gains last week, gold and silver price momentum seemingly hinged on U.S. economic data releases this week and subsequent Fed action. Friday’s surprising uptick in Nonfarm payrolls meant some downward pressure for bullion as, for some, this upped the likelihood of a more hawkish Fed.
Gold and silver started the week at $1,772 and $19.89, respectively. Both metals experienced support from early safe-haven buying on Monday as investors anticipated Wednesday’s CPI data. An eventual move higher to $1,886 for gold and $20.67 for silver was supported by a dollar dip and risk-off Wall Street sentiment.
Disappointing earnings data from tech companies and chipmakers continued to weigh on U.S. equities into Tuesday. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all fell. The tech-heavy Nasdaq fell by the most, at 1.2%. Despite intraday swings, gold and silver saw little change on Tuesday, as the pair ended trading near $1,789 and $20.39, respectively.