Gold, Silver and Platinum post straight losses as strong dollar offsets Fed dovish stance
The dollar's recovery put pressure on the market
Gold, silver, and platinum prices are struggling to gain momentum, as recent Federal Reserve comments and a firming U.S. dollar weigh on prices. Despite the Fed holding rates at 4.25%–4.50% for the second consecutive meeting and announcing a slowdown in quantitative tightening, precious metals have yet to capitalize on these dovish signals. Instead, a modest dollar recovery has kept pressure on the market.
Gold has posted its second consecutive day of losses, falling sharply during the Asian session to a three-day low. The decline found support at the 100 EMA on the one-hour chart, keeping price action contained above the $3,022 level. Due to gold’s RSI near overbought territory, a deeper retracement is possible if selling pressure intensifies.
Gold price dynamics (March 2025). Source: TradingView
Silver and Platinum have extended declines to three consecutive days of losses, but silver found support at the 100 EMA on the four-hour chart and is currently trading near $33.13 in the North American session. Platinum, meanwhile, broke below a critical support at $980.0 in the European session, extending its decline to $976.0. It is now retesting the $980.0 level, which has turned into short-term resistance.
Fed signals rate cuts in 2025, but dollar strength weigh on metals
The Federal Reserve’s latest policy stance added uncertainty to the outlook for precious metals. While policymakers acknowledged a solid labor market, they also noted that inflation remains a concern, leading them to revise economic projections. The Fed now expects two rate cuts in 2025, alongside higher inflation and a rising unemployment rate. However, Fed Chair Jerome Powell’s neutral tone stating that economic uncertainty has increased has left traders waiting for clearer direction.
As the dollar index continues to test resistance near 103.7, a potential breakout above the 100 EMA at 104.10 could further pressure precious metals. Gold, silver, and platinum will need a shift in sentiment or renewed buying interest to regain bullish momentum.
Precious metals fell as the U.S. dollar strengthened following the Fed’s stance on interest rates. Gold tested lower levels but found support amid expectations of rate cuts and geopolitical risks
