Gold and silver prices are likely to remain volatile in the coming weeks as investors weigh escalating geopolitical tensions against growing expectations that the U.S. Federal Reserve could keep interest rates higher for longer.
Recent recoveries in the precious metals complex have failed to dispel concerns over potential rate hikes, creating a cautious outlook for both assets.
The market is currently in a "no-trade zone," where neither bullish nor bearish momentum has gained sufficient traction to drive a sustained trend.
While geopolitical risks continue to provide a floor for prices, the prospect of persistent inflation driven by oil prices and a hawkish Federal Reserve stance acts as a significant headwind.
Traders are hesitant to commit to large positions until the macroeconomic picture becomes clearer.
This hesitation follows a period of sharp declines in precious metals.