Precious Metals Rebound as Dollar Rally Pauses

Gold and silver prices advanced as a multi-day rally in the US Dollar stalled, providing relief for the metals market. The dollar's momentum faded despite US economic data indicating firm Core PCE inflation and stronger-than-expected first-quarter growth. This pause in the greenback's ascent allowed gold to recover almost 1%, while silver rebounded more than 2% during Thursday's session.

Fed Officials Reinforce Hawkish Inflation Stance

Federal Reserve officials reiterated that inflation remains the central bank's primary concern. Chicago Fed President Austan Goolsbee stated inflation is "clearly the problem," and New York Fed President John Williams remarked that inflation is still too high, pushing back the timeline for achieving the 2% target to 2028. These comments underscore a continued cautious approach to monetary policy, suggesting interest rates may remain elevated for a prolonged period.

Global Central Banks Maintain Policy Positions

Several major central banks outside the United States held their monetary policy steady. The Bank of Mexico kept its benchmark interest rate unchanged at 6.50%, as expected, noting that the balance of inflation risks is tilted to the upside. Similarly, the Bank of Thailand maintained its policy rate to support fragile growth, while consultations by the Bank of Canada showed broad public support for its existing 2% inflation target.