These concerns also lifted US Treasury bond yields, reinforcing the dollar's appeal and limiting gold's upside.
Despite these headwinds, expectations of a Federal Reserve (Fed) rate cut remain intact. Markets anticipate two rate reductions by the end of 2025, with Trump advocating for immediate cuts. If the Fed signals an easing cycle, this could cap bond yields, weakening the dollar and providing support to gold prices.
Silver (XAG/USD) is trading around $30.06, struggling to sustain momentum amid the resilient US dollar. While silver often mirrors gold's movements, it remains more vulnerable to shifts in industrial demand.
The uncertainty surrounding tariff hikes on metals -- including aluminum and copper -- has heightened volatility in commodity markets, further weighing on silver prices.
Additionally, China's weak economic data, particularly a contraction in manufacturing PMI, has raised concerns over industrial metal demand. If global growth slows, silver could face additional downside pressure.
Gold (XAU/USD) remains under pressure near $2,740, struggling below key resistance at $2,744.57. While Silver (XAG/USD) is hovering around $30.06, facing resistance at $30.24. A break above this level could push prices toward $30.61, while sustained selling may drive it lower to $29.86.