While inflation data initially lifted the dollar and triggered a sharp gold sell-off, the greenback’s momentum quickly faded, allowing the metal to regain lost ground. However, a prevailing risk-on sentiment — driven by positive developments in global trade talks and strong equity market performance — continues to limit safe-haven demand.
Silver Edges Higher but Faces Risk Appetite Headwinds
Silver also advanced modestly on Friday, supported by the weaker US dollar and Fed policy expectations. Gains, however, remain restrained as improved market sentiment encourages capital flows into risk-sensitive assets rather than defensive holdings.
Silver’s dual role as both a precious and industrial metal means its outlook is also being shaped by broader economic signals, particularly demand prospects in manufacturing-heavy economies.
Market participants are weighing the potential for increased industrial demand against the near-term risk of reduced safe-haven flows if global risk appetite remains elevated. The upcoming US economic data cycle will play a critical role in defining silver’s trajectory into next week.
Investors are turning their attention to upcoming US macro releases, including Retail Sales, the Empire State Manufacturing Index, and the University of Michigan Consumer Sentiment Index. These reports, coupled with remarks from Federal Reserve policymakers, will guide market expectations for the pace and scale of monetary easing.
While gold and silver have both rebounded from recent lows, the absence of strong follow-through buying suggests upward momentum may remain capped in the near term. Any rallies are likely to encounter profit-taking unless incoming data and Fed commentary firmly reinforce the case for aggressive monetary easing.