Demand for silver continues to rise sharply, driven primarily by the technology, electric vehicle, and solar power sectors—where silver is highly sought after due to its superior electrical conductivity. Meanwhile, silver supply remains limited because many mines only produce silver as a byproduct of copper, lead, or zinc—so even when prices rise, production does not immediately respond.Due to the combination of rising demand and slow supply growth, the silver market has recorded a structural deficit for several consecutive years. This provides a strong fundamental basis for the potential...
Gold prices dipped in the mid-day US session on Thursday as US Treasury yields rose following the release of weekly jobless claims data, while markets awaited US nonfarm payrolls figures for fresh insights into the Federal Reserve's stance on cutting interest rates. The number of Americans filing new applications for unemployment benefits rose modestly last week, suggesting the labor market continues to cool steadily. Investors' focus now turns to Friday's US nonfarm payrolls, which are likely to increase by 200,000 jobs in the month after rising by just 12,000 in October, for further...
Silver (XAG/USD) prices moved lower to around $31.20, ending a two-day winning streak during the early European session on Thursday(12/5). The Federal Reserve's (Fed) cautious stance on interest rate cuts weighed on the white metal. Federal Reserve Chairman Jerome Powell said Wednesday that the strength of the U.S. economy means the U.S. central bank can afford to be "a little more cautious" about decisions about interest rate moves. Joseph Brusuelas, chief economist at RSM US, noted that he does not expect another rate cut after the December meeting until March 2025 at the earliest.
Gold prices are currently stable in the Asian session on Thursday, as political turmoil in South Korea spurs safe-haven demand, although anticipation of further cues on US interest rates keeps traders on the sidelines.
Silver prices maintained their recent gains to around $30 an ounce on Wednesday, holding at a more than one-week high as markets anticipate that the US Federal Reserve will cut interest rates again at its December meeting. Currently, markets are pricing in a 75% probability of a 25 basis point rate cut this month. Investors are now focused on the upcoming US jobs data and remarks from Fed Chair Jerome Powell later this week for further clarity on the Fed's monetary policy path.
Gold bullion prices pared earlier gains as "JOLTS data confirmed our expectations for a rebound in the jobs market, alleviating concerns of a significant slowdown in the labor market ahead of Friday's nonfarm payrolls report," said Daniel Ghali, commodity strategist at TD Securities. A strong jobs report could prompt the Fed to take a cautious stance on cutting interest rates. Investors' focus shifts to the ADP jobs report and Fed Chair Jerome Powell's speech on Wednesday, ahead of Friday's payrolls report.