- Silver prices gain ground as weaker jobs data increases chances of Fed rate cut in September.
- The CME’s FedWatch tool indicates that the odds of a Fed rate cut in September have risen to 76.2%, up from 65.5% a week earlier.
- La Plata, as a safe haven, could face challenges due to the anticipated progress in ceasefire negotiations in the Gaza war.
Silver (XAG/USD) price is recovering its recent losses, trading around $31.00 per troy ounce during the European session on Tuesday. Investors are awaiting Federal Reserve Chairman Jerome Powell’s testimony on “The Semiannual Monetary Policy Report” before the US Congress on Tuesday. Powell could provide an overview of the economy and monetary policy, with his prepared remarks being released ahead of his appearance on Capitol Hill.
On Friday, weaker US jobs data sparked speculation that the Federal Reserve (Fed) may consider cutting interest rates in September. This continues to provide support for non-yielding assets like Silver.
The CME’s FedWatch tool indicates that rate markets price in a 76.2% chance of a rate cut in September, up from 65.5% just a week earlier.
In addition, US inflation figures are due on Thursday. The US core CPI is expected to hold steady at 3.4% year-on-year in June, with the monthly core CPI likely to remain stable at 0.2%.
Silver, as a safe haven, could face challenges as market participants await progress in Middle East ceasefire negotiations. A potential ceasefire agreement in Gaza could ease risk sentiment and support riskier assets.
However, according to the White House, there are significant differences between the parties involved, with Hamas expressing concerns about further Israeli actions in Gaza that could jeopardize the potential for a deal.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
