- Silver price is supported as weaker US data increases chances of Fed rate cut in 2024.
- US Nonfarm Payrolls are expected to rise by 190,000 new jobs, down from the previous reading of 272,000.
- The potential for improvement in negotiations between Israel and Hamas may limit the upside of Silver as a safe haven.
Silver (XAG/USD) price is recovering its recent losses, trading around $30.60 per troy ounce during the European session on Friday. Weaker economic data from the United States (US) has raised speculation that the Federal Reserve (Fed) may consider cutting interest rates in 2024. This has provided support to non-yielding assets like silver.
Also, Federal Reserve (Fed) Chairman Jerome Powell struck a slightly dovish tone 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 US economy and labor market remain strong, according to Reuters.
On Wednesday, the US ISM Services PMI fell sharply to 48.8 in June, marking the largest drop since April 2020. In addition, the ADP Employment report showed that US private companies added 150,000 workers to their payrolls in June, the smallest increase in five months.
Traders are awaiting US employment reports on Friday, which are expected to indicate a slowdown in job growth in June. US Nonfarm Payrolls (NFP) is forecast to show an increase of 190,000 new jobs, down from the previous reading of 272,000. In addition, US average hourly earnings are anticipated to moderate slightly, with projections showing a decline to 3.9% year-on-year from the previous reading of 4.1%.
On the geopolitical front, Israeli Prime Minister Benjamin Netanyahu informed US President Joe Biden on Thursday that he has decided to send a delegation to resume stalled negotiations on a hostage release deal with Hamas. A source within the Israeli negotiating team said there is a real chance of reaching an agreement after Hamas made a revised proposal on the terms of the deal, Reuters reported. This may limit the upside of safe haven assets like Silver.
Silver prices are being supported by rising demand for the metal in the expansion of renewable energy. Silver is a key component in solar panels and other renewable energy technologies due to its conductivity in photovoltaic cells.
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.
