Safe-Haven Demand Supports Metals (10.16.2026)

Declining Treasury yields and rising geopolitical tensions supported precious metals as an equity market selloff increased demand for safe-haven assets. 

Gold held above $4,150 and silver stabilized near $57, although expectations for another Federal Reserve rate hike in December limited further gains. The euro recovered toward 1.12 as the dollar eased, while sterling advanced toward 1.325 following stronger UK economic data and growing Bank of England tightening expectations. Meanwhile, the yen strengthened below 158 per dollar after Japanese officials warned of possible currency intervention. Persistent Middle East tensions and inflation risks kept investors cautious.

EUR/USD Recovers Toward 1.12

EUR/USD moved back toward 1.12 as the dollar eased slightly, though the pair continues trading near its lowest levels since May 2025. Projections for additional Federal Reserve monetary tightening maintain underlying support for the dollar. Meanwhile, persistent political and fiscal friction in France weighs on the euro, despite financial markets anticipating another European Central Bank rate increase in December.

The first resistance is positioned at 1.1250 while the support starts from 1.1160.

Gold Holds Above $4,150

Gold held firm above $4,150 per ounce as market participants sought safe-haven assets following an equity selloff and escalating Middle East friction. Declining Treasury yields provided further support for the metal. Nevertheless, strong US economic data raised expectations of continued Federal Reserve policy tightening, with markets pricing a 72% chance of a rate hold this month and 92% odds of a December hike.

First resistance is seen at $4190, with initial support near $4125.

USD/JPY Falls Below 158

USD/JPY dropped below 158 as the yen rebounded following official warnings of potential Japanese currency market intervention. The yen had previously weakened after hot US inflation figures. Meanwhile, the Bank of Japan maintains its signal of a gradual approach toward rate increases, with markets viewing December as the most probable timing for the next hike.

First resistance is seen at 158.60, with initial support near 157.50.

Sterling Rises Toward $1.325

The pound advanced toward $1.325 following UK economic data showing stronger August growth, reinforcing market expectations of a Bank of England rate increase next month. Monthly GDP grew 0.1% after expanding 0.4% in July, pushing three-month expansion to 0.7%. Solid economic performance, combined with ongoing energy shocks from the Iran conflict, may intensify inflation risks. Investors now look ahead to the October 28 budget statement.

From a technical view, resistance stands near 1.3320, with support around 1.3170.

Silver Holds Above $57 For Now

Silver held above $57 per ounce on Friday following a recent rebound, drawing support from safe-haven demand as global stock markets faced selling pressure. Retreating bond yields and heightened Middle East friction further supported precious metals. However, resilient US economic data sustained expectations of continued Federal Reserve policy tightening, with financial markets pricing a 72% likelihood of a pause this month and a 92% probability of a rate hike in December.

From a technical view, resistance stands near $59.50, while support is located around $56.20.