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...
Gold held firm near a more-than-two-week peak on Thursday, as the dollar softened and investors hunkered down for Friday's U.S. inflation data for cues on the Federal Reserve's policy path. Spot gold was up 0.1% at $3,399.60 per ounce, as of 0851 GMT, after hitting $3,401.73, its highest level since August 11, earlier in the session. U.S. gold futures for December delivery edged 0.2% higher to $3,456.20. The dollar index was down 0.1% against its rivals. Investors are awaiting the release of the Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure for the...
Oil prices have been little changed in their recent narrow range as traders continue to monitor the possibility of a supply glut and US efforts to force India to halt purchases of Russian oil. Brent crude briefly touched below $68 per barrel, after trading between $65 and $70 for most of August. White House trade adviser Peter Navarro increased pressure on New Delhi to halt purchases of Russian oil after Washington doubled import duties from the country to 50%. The US has been squeezing India over its imports of Russian crude as part of its efforts to end the war in Ukraine. At the same...