Rhona O’Connell, Head of Market Analysis for EMEA & Asia at StoneX, notes that while some buying interest has emerged in parts of the Far East, it is largely offset by regional sales, resulting in a stagnant market. Professional investors remain cautious, avoiding short-term bets unless they are direct reactions to interest rate expectations. With narrow trading ranges dominating the sector, the analyst warns that downside risks remain more probable than any sustained price rallies.

Inflation data continues to complicate the outlook, particularly regarding energy costs. While the June CPI reading showed a temporary dip largely attributed to a 6% drop in energy prices, O’Connell expects this trend to reverse in July. This volatility places the Federal Reserve in a difficult position ahead of its late July meeting. FOMC members remain divided, with some officials suggesting that persistent inflation may necessitate further rate hikes despite the risk of overtightening. As the 10-year yield climbs toward 4.6%, the cost of holding non-yielding assets continues to weigh heavily on gold, while silver faces additional pressure from its industrial exposure.