Gold and silver prices surged on Wednesday, reaching their highest levels in several weeks, as the latest U.S. Consumer Price Index (CPI) report showed inflation cooling slightly, reinforcing investor demand for safe-haven assets.
Gold for April delivery climbed $20.40 to $2,941.30 per ounce, while May silver rose $0.538 to $33.68 per ounce. Analysts suggest that if economic uncertainty persists, gold and silver could see further gains.
Inflation Eases, Boosting Precious Metals
The February CPI report showed a 2.8% year-over-year increase, slightly below market expectations of 2.9%, and down from 3.0% in January. This suggests that inflationary pressures may be easing, increasing the likelihood that the Federal Reserve will consider interest rate cuts later this year.
Investors are now looking ahead to the Producer Price Index (PPI) report set to be released on Thursday, which is expected to show a 0.3% increase compared to January’s 0.4% rise.
Meanwhile, the U.S. dollar index declined after the CPI data was released, further supporting gold and silver prices, as a weaker dollar makes precious metals more attractive to investors.
Market Uncertainty and Global Trade Concerns
Despite the stock market rising at midday, major U.S. indexes remain volatile due to concerns over Trump’s trade tariffs and global economic slowdown risks. Investors remain cautious about ongoing U.S.-China trade tensions, which could impact global supply chains and economic growth.
A Wall Street Journal report highlighted investor concerns, stating that uncertainty over tariffs and international trade policies is dragging on market sentiment. Oil prices, meanwhile, edged higher, with NYMEX crude trading at $67.75 per barrel, reflecting ongoing geopolitical risks.
Technical Outlook for Gold and Silver
Gold bulls remain in a strong position, with analysts setting an upside target of $2,974.00 per ounce if resistance levels are breached. Support levels are currently seen at $2,911.00 and $2,900.00.
For silver, analysts expect resistance at $34.56 per ounce, while strong support exists at $33.18 and $33.00. If market conditions remain favorable, silver prices could extend their rally.
With inflationary pressures easing and safe-haven demand rising, gold and silver remain well-positioned for further gains, especially if economic uncertainty continues.
