Silver Surges Near $51, NFP Data Ready to Test Rally
Silver prices (XAG/USD) strengthened and moved near $51.00 during Monday's Asian session. This increase occurred amid market uncertainty following the end of the US government shutdown. Market participants are also preparing to closely monitor the speeches of several Fed officials, including John Williams, Philip Jefferson, Neel Kashkari, and Christopher Waller, who could potentially provide new clues on the direction of interest rates.
The main focus this week is the release of the US Nonfarm Payrolls (NFP) data for September on Thursday. This data is of interest because it could provide a clearer picture of the US labor market conditions and the direction of the Fed's policy for the December meeting. If the labor data is weak, the US dollar could weaken, which usually provides additional support for silver prices, a commodity priced in USD.
On the other hand, hawkish comments from several Fed officials ahead of the release of a series of US economic data have made the market cautious and could restrain further silver gains. Kansas City Fed President Jeffery Schmid believes current monetary policy is already tight enough and needs to continue to restrain demand growth, a signal that the Fed is in no rush to cut interest rates.
Currently, market participants are pricing in only about a 40% chance of a 25 bps rate cut at the Fed's December meeting, down significantly from over 60% at the start of the month, according to CME FedWatch. This situation has left the precious metals market, including silver, in a tug-of-war: will the next data and Fed comments extend silver's rally, or trigger a deeper correction?
Source: Newsmaker.idthened and moved near $51.00 during Monday's Asian session. This increase occurred amid market uncertainty following the end of the US government shutdown. Market participants are also preparing to closely monitor the speeches of several Fed officials, including John Williams, Philip Jefferson, Neel Kashkari, and Christopher Waller, who could potentially provide new clues on the direction of interest rates.
The main focus this week is the release of the US Nonfarm Payrolls (NFP) data for September on Thursday. This data is of interest because it could provide a clearer picture of the US labor market conditions and the direction of the Fed's policy for the December meeting. If the labor data is weak, the US dollar could weaken, which usually provides additional support for silver prices, a commodity priced in USD.
On the other hand, hawkish comments from several Fed officials ahead of the release of a series of US economic data have made the market cautious and could restrain further silver gains. Kansas City Fed President Jeffery Schmid believes current monetary policy is already tight enough and needs to continue to restrain demand growth, a signal that the Fed is in no rush to cut interest rates.
Currently, market participants are pricing in only about a 40% chance of a 25 bps rate cut at the Fed's December meeting, down significantly from over 60% at the start of the month, according to CME FedWatch. This situation has left the precious metals market, including silver, in a tug-of-war: will the next data and Fed comments extend silver's rally, or trigger a deeper correction?(Asd)
Source: Newsmaker.id
