Silver prices held above $38.50 per ounce on Thursday (August 14th), hovering near a three-week high as expectations of a deeper Federal Reserve interest rate cut this year buoyed the market. Weaker US inflation data suggested that President Donald Trump's tariffs were not adding to price pressures, while signs of a weakening labor market reinforced the dovish outlook. The market is almost fully pricing in a September rate cut, with some anticipating a larger 50 basis point cut. Additionally, Treasury Secretary Scott Bessent called for multiple rate cuts and said the Fed could begin...
Silver prices edged higher in Asia as traders anticipated signals on the US economy under President-elect Donald Trump. Silver recovered from earlier losses amid low trading volumes ahead of the New Year holiday. Potential tariffs and trade policies from Donald Trump could trigger a trade conflict, boosting risk-off sentiment and supporting demand for safe-haven assets such as Silver. However, the prospect of fewer Fed rate cuts in 2025 may limit the upside in non-yielding Silver.
Gold moved steadily in the $2620s area amid small trading volumes due to the holidays that have begun in several world markets. Gold itself opened with slight gains after previously closing with a decline. Gold is heading for one of its biggest annual gains this century, with a 27% increase driven by US monetary easing, ongoing geopolitical risks, and a wave of central bank purchases.
Gold prices started the Asian session with a slight increase after previously closing lower on Friday. The increase occurred as the market anticipated signals from the US economy and the Fed's interest rate outlook for 2025 after the PCE data came in below expectations. Israel's attack on Yemen is also one of the factors driving gold at this time. Gold, a non-yielding asset, gained traction as the below-forecast US PCE inflation data raised expectations for a limited Fed interest rate cut next year, hinting at the possibility of more cuts.
Silver prices fell around $29.40 in thin US midday trading after the Christmas holiday on Friday (12/27). The white metal came under pressure even as tensions in the Middle East between Israel and Iran have escalated. On Thursday, Israel launched missiles at the Iranian-backed Houthi military and bombed Yemini airport. Following the airstrike, Israeli Prime Minister Benjamin Netanyahu said in an interview with Israeli Houthi TV, "We are just getting started with them." Israel retaliated against last week's airstrike by Iran. Historically, rising geopolitical tensions increase demand for...
Gold prices plunged and are on track for a weekly decline amid light holiday trading. Gold was trading at $2,615 an ounce in the US Central session, and is set to end the week lower. The precious metal has been declining against stronger US Treasury yields, with the market looking to 2025 for fresh catalysts. Market pessimism around the prospect of a significant US interest rate cut in the new year has continued to weigh on gold prices in late December, reflecting hawkish Federal Reserve comments and the inflationary nature of many of President-elect Donald Trump's proposed policies....