Silver prices held steady around $38.8 per ounce on Monday, hovering near their highest levels since 2011 amid bets on US Federal Reserve policy easing. The metal rallied about 2% on Friday after Fed Chair Powell signaled that the central bank is likely to cut rates at its next meeting. Powell noted that while unemployment remains low, risks to the labor market are increasing and policy remains "restrictive," suggesting that adjustments may be warranted. Markets are now pricing in an 87% probability of a 25 bps rate cut in September, up from about 75% at some point last week. On the...
Gold price (XAU/USD) drifts lower to around $3,350 during the early European session on Monday(25/8), pressured by a stronger US Dollar (USD). Nonetheless, rising optimism of a September rate cut following comments by Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole symposium might cap the downside for the yellow metal. The Fed's Powell has opened the door to a rate reduction in the September meeting, but that position could become complicated if inflation pressures continue to rise. Powell added that the US economy is facing a "challenging situation," with inflation risks now...
The EUR/USD pair has opened the week with a moderate pullback from Friday's highs, at 1.1742. The pair is trading at 1.1700 at the European session opening on Monday, as the US Dollar picks up from the low levels reached after the Federal Reserve (Fed) Chairman Jerome Powell opened the door for monetary easing. Powell surprised investors with an unexpected dovish tone at the Jackson Hole Symposium, warning that "downside risk to employment is rising" and that if those risks materialize, they could quickly lead to a strong increase in unemployment. More specifically, he affirmed that the...