The broader market sentiment remains cautious as traders weigh conflicting economic signals. While recent CPI and PPI data suggest cooling inflation, robust retail sales and low jobless claims have prevented investors from fully pricing in a dovish pivot. Market participants are currently assigning a one-third probability to a surprise rate hike, keeping the dollar firm near 101.40 and limiting the upside for non-yielding assets like bullion.

Technical pressure remains a dominant factor for precious metals. Gold has struggled to break above the $4,041 resistance zone, with bears maintaining a near-term advantage. Meanwhile, silver continues to trade below the critical $60.00 inflection point, hovering near the lower end of its daily range. Analysts are now focusing on Wednesday’s Fed decision and Chair Kevin Warsh’s press conference, alongside Thursday’s GDP and PCE inflation data, to determine whether gold can defend its $4,011 support level or face a deeper correction toward the $3,959 mark.