Asian Session Gold and Silver Prices Climb Steadily: Dual Boost from Fed Rate Cut Expectations and Dollar Weakness
During Asian trading on July 29, 2026, gold and silver prices extended overnight gains, both hitting nearly two-week highs. As of 10:30 Beijing time, spot gold was at $2,452.8 per ounce, up 0.7% from the previous session; the Shanghai Gold Exchange AU9999 was at 580.3 yuan per gram, up 0.6%. International spot silver also strengthened, trading at $31.15 per ounce, up 0.8%, with the gold-silver ratio around 78.7.
The main driver of this rally was Fed Chair Powell's speech on July 28. Speaking at an IMF event, Powell said U.S. inflation has shown "encouraging easing," and if data continues to improve, the Fed may begin rate cuts at the September meeting. This dovish stance caused the dollar index to plunge to 101.2, a two-week low, while the 10-year Treasury yield fell 5 bps to 4.12%, providing strong support for precious metals.
Asian Markets Lead, Domestic-Foreign Spread Widens
Asian session outperformed European and U.S. markets. The main gold futures contract on the Tokyo Commodity Exchange rose 0.9% to 11,200 yen per gram, while the Hong Kong Gold and Silver Exchange Society's London gold fix was $2,451 per ounce. Notably, the AU9999 price at the Shanghai Gold Exchange was at a premium of about 1.2 yuan per gram over the converted London gold price (based on the day's exchange rate of 7.25), indicating strong domestic buying. Analysts noted that recent fluctuation in the renminbi exchange rate and increased demand for safe-haven assets among domestic investors have widened the spread.
For silver, the Shanghai silver spot T+D contract was at 7,750 yuan per kilogram, up 0.9%, slightly outperforming gold. Expectations of industrial demand recovery are additional drivers. China's new photovoltaic installations grew 35% year-on-year in June, further boosting silver's industrial prospects.
Technical Analysis: Gold Breaks Key Resistance, Silver Tests Previous High
Technically, spot gold successfully broke through the resistance at $2,450 per ounce in early Asian trade on July 29, a level that had capped prices for three consecutive sessions. On the daily chart, the MACD formed a golden cross and the RSI rose to 62, indicating strong short-term bullish momentum. The next resistance is at $2,470 (June high), with support shifting up to $2,420.
Silver prices have approached the previous high of $31.20. If it effectively breaks above intraday, it could open the upside to $32. The gold-silver ratio has fallen from a high of 82 in early July to 78.7, showing silver's greater flexibility, consistent with the historical pattern that silver often outperforms gold during rate cut expectation phases.
Outlook: Focus on Fed Decision and Geopolitical Risks
Market attention has shifted to the late-August Jackson Hole global central bank symposium and the September Fed rate decision. According to the CME FedWatch tool, the probability of a 25-bps rate cut in September has risen to 72%, up sharply from 54% a week ago. In addition, ongoing tensions in the Middle East and recent military friction on the Korean Peninsula also support safe-haven demand for gold and silver.
However, investors should also be alert to correction risks. Current gold prices have fully priced in rate cut expectations; if subsequent U.S. economic data surprises to the upside, it could trigger an expectation adjustment. For silver, industrial demand data, especially manufacturing PMIs from China, Europe, and the U.S., need to be watched.
Overall, gold and silver real-time prices on July 29, 2026, are showing a strong pattern, with Asian markets leading globally. Investors should closely monitor developments after the New York session opens and data such as the revised U.S. Q2 GDP that could further catalyze the market.
