Silver Holds Strong as Dollar Falters (05.21.2025)

EUR/USD pushed higher toward 1.1330, lifted by a weaker dollar and cautious optimism around U.S. tariff de-escalation.

Yen Below 144.00, Hawkish Bets Grow

The Japanese Yen strengthened further on Wednesday, driving USD/JPY below 144.00 and marking a two-week low. Markets increasingly expect the Bank of Japan to hike rates again in 2025, spurred by recent hawkish remarks from Deputy Governor Shinichi Uchida and persistent inflation concerns. Rising U.S.-China tensions have also pushed demand for yen.

Meanwhile, optimism around a potential U.S.-Japan trade deal adds to bullish sentiment for the yen, while the U.S. dollar remains under pressure amid expectations for continued Fed rate cuts.

Resistance is located at 148.60, with further upside barriers at 149.80 and 151.20. Support is seen at 139.70, then 137.00 and 135.00.

Gold Eyes Break Above $3,300

Gold regained ground on Wednesday as investors sought the safety of precious metals with renewed U.S.-China tensions and ongoing fiscal concerns. Moody’s downgrade of U.S. credit and the proposed extension of Trump-era tax cuts have raised fears of a ballooning deficit, weakening the dollar, and increasing demand for gold.

Additionally, reports that G7 nations may jointly impose tariffs on low-value Chinese goods have fueled risk-off sentiment. Gold climbed to an eight-day high just above $3,300.

Immediate resistance lies at $3,320, followed by $3,370 and $3,440. Support begins at $3,250, then $3,150, and $3,025.

GBP/USD at 1.3400, PMI Data Awaited

GBP/USD edged higher toward 1.3400, supported by dollar softness and cautious optimism before UK economic data. Markets are awaiting April’s CPI on Wednesday and both UK and U.S. PMI data on Thursday.

Trade developments remain a major driver of sentiment, with investors hoping the U.S. administration will scale back tariff threats, though little progress has been seen with the 90-day deadline approaching.

UK inflation is expected to rise, with monthly CPI seen at 1.1% and annual CPI reaching 3.3%, while core CPI may tick up to 3.6%. Thursday’s PMI data could further influence the pair, with modest UK strength and mixed U.S. figures forecast.

Resistance is at 1.3450, with higher levels at 1.3550 and 1.3700. Support stands at 1.3250, followed by 1.3150 and 1.3000.

Dollar Weakness Supports Silver at $33.10

Silver hovered near $33.10 on Wednesday after a strong Tuesday rally, supported by broad dollar weakness and renewed demand for the metal. Uncertainty over U.S. trade policy, Moody’s downgrade of U.S. debt, and fiscal concerns have all contributed to the metal’s gains.

Despite easing slightly from session highs, silver maintains upside potential in the near term.

Resistance is located at $33.80, with further targets at $34.20 and $34.90. First support is found at $32.30, followed by $31.40 and $30.20.