Silver gives up eight-month peak on profit-taking
Silver prices fell over 2% in European trade on Tuesday away from eight-month highs on profit-taking as the dollar rebounds against major rivals.
It comes ahead of crucial US labor data, which would provide clues on the odds of the Fed rate cuts this year.
Prices
Silver prices fell 2.2% today to $33.97 an ounce, with a session-high at $34.77.
On Monday, silver rose 5.5%, the second profit in three days, and the largest in 2025 on strong retail demand.
US Dollar
The dollar index rose over 0.35% on Tuesday away from six-week lows 99.58 against a basket of major rivals.
The dolar’s recovery comes as the Trump administration seeks to calm recent jitters with China and restore business confidence in the US.
The White House said President Donald Trump and his Chinese counterpart will speak this week after days of mutual accusations of violating the trade agreement in Geneva.
US Rates
Fed official Christopher Waller said rate cuts later this year are still possible even if Trump’s tariffs lead to price pressures.
According to the Fedwatch tool, the odds of a Fed 0.25% June interest rate cut stood at 2%, while the odds of a July rate cut stood at 24%.
Now traders expect 50 basis points of US rate cuts overall this year, starting October.
Eurozone inflation slows down more than expected in May
the eurozone consumer prices rose 1.9% y/y in May, below estimates of 0.2%, and down from a 2.2% rise in April.
core prices, excluding food and energy, rose 2.3%, below estimates of 2.4%, and down from 2.7% in the previous reading.
Swiss inflation shrinks for first time in 4 years
Swiss consumer prices shrank 0.1% y/y in May, the first such contraction since March 2021, matching expectations.
On a monthly basis, prices rose 0.1% as expected.
Such data powerfully bolsters the odds of a Swiss interest rate cut in June.
Gold backs off four-week high on profit-taking
Gold prices fell in European trade on Tuesday away from four-week highs scaled in Asian trade, amid active profit-taking, while the US dollar rebounded.
It comes ahead of crucial US labor data, which would provide clues on the odds of the Fed rate cuts this year.
Prices
Gold prices fell 0.9% to $3351 an ounce, with May 8 highs at $3392.
On Monday, gold rallied 2.8%, the second profit in three days, and the largest since May 6 on haven demand amid mounting geopolitical tensions.
US Dollar
The dollar index rose over 0.35% on Tuesday away from six-week lows 99.58 against a basket of major rivals.
The dolar’s recovery comes as the Trump administration seeks to calm recent jitters with China and restore business confidence in the US.
The White House said President Donald Trump and his Chinese counterpart will speak this week after days of mutual accusations of violating the trade agreement in Geneva.
US Rates
Fed official Christopher Waller said rate cuts later this year are still possible even if Trump’s tariffs lead to price pressures.
According to the Fedwatch tool, the odds of a Fed 0.25% June interest rate cut stood at 2%, while the odds of a July rate cut stood at 24%.
Now traders expect 50 basis points of US rate cuts overall this year, starting October.
SPDR
Gold holdings at the SPDR Gold Trust rose 2.87 tons yesterday to a total of 933.07 tons, the highest since May 13.