Silver is now stable around $57 per ounce after previously hitting a record high near $59 earlier in the week. Selling pressure emerged as many traders opted to take profits after a rally they deemed too strong. The more than 2% drop in the previous session also pushed silver out of "overbought" territory, so this correction looks more like a short-term breather than a major trend reversal.

The recent rise in silver prices has been largely supported by expectations that the Federal Reserve will cut interest rates at its meeting next week. Swap contracts indicate the market is almost certain the Fed will cut borrowing costs, and this is typically positive for precious metals like silver and gold, which pay no interest. Interestingly, these expectations remain strong despite the latest data showing US jobless claims falling to a three-year low, indicating a relatively solid labor market.

At 7:45 a.m. Singapore time, silver edged down 0.2% to $57.02 per ounce, while gold remained relatively stable at around $4,205 per ounce. Platinum and palladium prices also remained relatively unchanged. Meanwhile, the Bloomberg Dollar Spot Index rose 0.1% in the previous session, which typically can slightly curb precious metals price gains as a stronger dollar makes them more expensive for overseas buyers. (az)

Source: Newsmaker.id