- Silver price is trading in negative territory around $29.00 for the fifth consecutive day on Tuesday, down 0.35% on the day.
- Concerns over Chinese demand are putting some selling pressure on the XAG/USD.
- Possible Fed interest rate cuts and political uncertainty could limit silver’s downside.
Silver (XAG/USD) price extends its decline near $29.00 during the Asian session on Tuesday. The white metal is lower amid a slowdown in the Chinese economy. Investors will take further cues from key US economic data later in the week, including the first reading of the S&P Global US Purchasing Managers Index (PMI) for July, the second quarter Gross Domestic Product (GDP) and the Personal Consumption Expenditure (PCE) Price Index data for June.
Concerns about industrial demand due to China’s economic slowdown continue to undermine silver prices in previous sessions. China’s second-quarter GDP was weaker than expected and retail sales increased at the slowest pace since 2022. It is worth noting that China is a large consumer of industrial metals, and China’s economic slowdown could weigh on silver prices.
On the other hand, rising expectations of Federal Reserve (Fed) rate cuts in September could boost the white metal. New York Fed President John Williams and Fed Governor Christopher Waller both noted that the Fed is “closer” to where it wants to be in terms of rate cuts.
According to the CME’s FedWatch tool, traders in the federal funds futures markets have fully priced in rate cuts in September, with at least two quarter-point cuts in 2024. In addition, political uncertainty following US President Joe Biden’s withdrawal from the 2024 election could support silver for the time being.
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.
