Gold prices dipped in thin trade on Monday as traders awaited fresh catalysts, including next week's U.S. economic data that could influence the Federal Reserve's 2025 interest-rate outlook, as well as policies from incoming President Donald Trump. Spot gold fell 0.7% to $2,602.67 per ounce. U.S. gold futures were down 0.7% at $2,615.70. I think it's just the holiday thin trade. Perhaps some squaring of the books before year-end," said Peter Grant, vice president and senior metals strategist at Zaner Metals. Geopolitical tensions are expected to remain high into next year, with central...
Silver eased to below the $29 per ounce mark, the lowest level since September, amid the outlook of a hawkish Fed and uncertain demand for silver's industrial utility. Concerns of stubborn inflation drove the FOMC to project fewer rate cuts for the upcoming year, driving markets to trim their exposure to non-yielding bullion assets. While the earlier rate cuts by the Fed supported bullion enough to raise silver prices by 23% this year, pessimistic demand for silver as an industrial input drove the metal to sharply underperform gold in the period. Overcapacity in China's solar panel...
UBS expects silver prices to climb in 2025, buoyed by lower U.S. real yields and stronger global industrial production, even as the metal struggles to match gold's central bank-driven gains. Silver prices rose over 20% in 2024 but recently lost momentum due to higher U.S. yields, a strong dollar, and growth concerns outside the U.S. The metal is trading near its 200-day moving average, with speculative short positions growing and ETF holdings stabilizing after significant outflows earlier this year. Despite these headwinds, UBS remains bullish, maintaining a target of $36-$38 per ounce for...