Silver (XAG) shows bullish price action and likely to follow gold's surge.

The US dollar strengthened on Friday and attempted to break above the key level of 107. This positive price action was built after the robust US economic data, with Services PMIs exceeding expectations. However, mixed signals emerged as the Manufacturing PMI remained in contraction territory despite marginal improvement. Meanwhile, consumer sentiment improved, signaling cautious optimism about economic resilience. Despite these gains, traders reduced the likelihood of a Federal Reserve rate cut in December. This reflects ongoing uncertainty about inflation trends and the direction of monetary policy.

Gold (XAU) surged above $2,700 amid escalating geopolitical tensions, reaching a two-week high of $2,710. Its safe-haven appeal strengthened due to concerns over the Russia-Ukraine conflict and uncertainty in the Middle East. If the geopolitical tensions persist, gold may challenge its all-time high of $2,790. The Core PCE Index data will come out on Tuesday, shaping to be the week's key event. It could trigger significant moves in both gold and the US dollar. It could trigger significant moves in both gold and the US dollar.