- Silver prices could advance further due to dovish sentiment surrounding the Fed’s policy outlook.
- Safe-haven silver received support from escalating geopolitical tensions in the Middle East.
- Iranian Supreme Leader Ali Khamenei has called for direct retaliation against Israel following the assassination of the Hamas leader.
Silver price is retracing its recent gains, trading around $28.90 per troy ounce during Asian hours on Thursday. However, the price of the grey metal gained ground on the back of dovish sentiment around the Federal Reserve’s (Fed) policy path. The Fed decided to keep rates unchanged in the 5.25%-5.50% range at its July meeting on Wednesday. Lower interest rates would increase the attractiveness of non-yielding assets like Silver.
During a press conference following the interest rate decision, Federal Reserve Chairman Jerome Powell said a rate cut in September is “on the table.” Powell added that the central bank will closely monitor the labor market and remain vigilant for signs of a possible sharp slowdown, according to Reuters.
The US ADP Employment Change rose by 122,000 in July and annual wages rose 4.8% year-over-year, according to data reported on Wednesday. This reading followed the increase of 155,000 (revised from 150,000) recorded in June and was below the market expectation of 150,000. Traders will look for further direction from US economic data, including the ISM Manufacturing PMI and weekly Initial Jobless Claims, which are scheduled to be released later on Thursday.
Safe-haven silver has also gained support due to heightened geopolitical tensions following the assassination of Hamas leader Ismail Haniyeh in Iran. According to the New York Times on Wednesday, Haniyeh was killed in Iran’s capital after attending the inauguration of the new president. Both Iranian officials and Hamas have accused Israel of being behind the attack. In response, Iran’s Supreme Leader Ali Khamenei has called for direct retaliation against Israel.
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.
