Silver prices (XAG/USD) rose more than 0.5%, trading around $38.80 per troy ounce in early European trading on Thursday (August 28th). Non-yielding silver prices strengthened amid the increasing likelihood of an interest rate cut by the US Federal Reserve (Fed). Lower interest rates reduce the opportunity cost of holding precious metals compared to interest-bearing assets, making silver more attractive. Traders now price an 88% chance of a rate cut of at least a quarter point at the Fed's September meeting, up from 82% the previous week, according to the CME FedWatch tool. This shift...
Oil prices plummeted on Thursday (August 28th) after briefly rising in the previous session, pressured by expectations of lower US fuel demand as the summer holiday season ends and Russian supplies to Hungary and Slovakia resume via the Druzhba pipeline resume. Crude prices briefly rose on Wednesday after official data showed US crude inventories fell by 2.4 million barrels in the week ending August 22nd, compared with analysts' expectations in a Reuters poll for a 1.9 million barrel drop, a sign of strong demand. However, oil market participants view the upcoming US Labor Day holiday as...
The U.S. dollar was little changed on Thursday (August 28th) as traders increased bets for a Fed rate cut next month after New York Fed Chairman John Williams hinted at the possibility of a rate cut. The U.S. currency is again under pressure from President Donald Trump's intensifying campaign to exert more influence over monetary policy decisions, as he seeks to oust Fed Chair Lisa Cook and replace her with a loyalist. The dollar weakened against the euro even after the French Prime Minister unexpectedly called for a no-confidence vote next month on Monday, which would likely lead to the...