- Silver prices are weakening as optimism grows following renewed efforts to secure a ceasefire agreement in Gaza.
- Egyptian and Qatari mediators have conveyed Hamas’ response to a proposal that includes the publication of hostages held in Gaza.
- The XAG/USD may limit its downside as the US Dollar may struggle due to rising expectations of the Fed cutting rates in 2024.
Silver (XAG/USD) price halts its five-day winning streak, trading around $30.40 per troy ounce during the European session on Thursday. The drop in the safe-haven metal’s price is attributed to rising optimism following signs of renewed efforts to secure a ceasefire agreement between Israel and Hamas, Reuters reported.
Mediators Egypt and Qatar delivered a Hamas response to a proposal that includes the release of hostages held in Gaza and a ceasefire in the Palestinian enclave. Israel is studying the document, according to a statement issued by Prime Minister Benjamin Netanyahu’s office on behalf of the Mossad spy agency.
The XAG/USD pair may limit its downside as the US Dollar (USD) may struggle amid weaker US data raising speculations that the Federal Reserve (Fed) will cut interest rates in 2024. The US ISM Services PMI fell sharply to 48.8 in June, marking the biggest drop since April 2020. This figure was well below market expectations of 52.5, following a reading of 53.8 in May.
In addition, the ADP employment report showed that U.S. private companies added 150,000 workers to their payrolls in June, the smallest increase in five months. This figure was below the 160,000 expected and below the downwardly revised 157,000 in May.
On Tuesday, Powell said the Fed is returning to a disinflationary path. However, Powell wants to see more evidence before cutting interest rates, as the U.S. economy and labor market remain strong, according to Reuters.
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.
