What it means for Gold, Silver and the markets
In one line Gold will try touch 5100$ from couple of zigzag points only
Federal Reserve Governor Christopher Waller says inflation is showing signs of improvement, but the Fed is not ready to declare victory yet.
In simple words: If inflation continues to cool, the Fed may keep interest rates unchanged. But if August inflation comes in hotter than expected, Waller is open to another rate hike.
Key Points
Inflation is still above the Fed’s 2% target, but the recent trend is improving.
Core inflation over the latest three months has fallen from 4.76% in February to 3.05% through July.
The U.S. economy remains reasonably strong, with GDP growing at a 1.8% annual rate in the first half of 2026.
The labour market also remains stable, with unemployment at 4.1% in July.
Waller’s next major focus is August inflation data. If inflation continues to improve, he is comfortable keeping rates unchanged. If inflation rises again, he could support a rate hike at the September 15–16 FOMC meeting.
🟡 Effect on Gold
This is a mixed but important signal for Gold.
Bullish for Gold:
If inflation continues to cool, pressure for another Fed rate hike reduces. Lower expectations for interest rates can push Treasury yields and the U.S. Dollar lower, which can support Gold.
⚪ Effect on Silver
Silver can react in the same direction as Gold, but it also depends heavily on industrial demand.
A softer Fed outlook could support Silver, while a renewed rate-hike expectation could create short-term pressure.
Bottom Line
The message from Waller is not “rate cuts are coming.” It is “the next move depends on the inflation data.”
For bullion traders, the August inflation numbers will therefore be extremely important ahead of the September FOMC meeting.
Our view: A continued fall in inflation would be supportive for Gold and Silver, while a hotter-than-expected inflation reading could trigger a short-term correction in bullion.
