Silver price eases amid profit-taking, US data anticipation
Silver (XAG/USD) moves lower on Tuesday, trading around $57.50 at the time of writing, down 0.70% on the day. The white metal is easing after Monday’s solid upward move, as market participants trim exposure ahead of several key US macroeconomic releases.
A mild recovery in the US Dollar (USD) and firmer US Treasury yields are adding pressure across the precious-metals complex, a pattern seen during previous episodes of risk aversion.
Still, the downside remains contained as Silver continues to benefit from a broadly supportive macro environment. Investors expect the Federal Reserve (Fed) to ease policy as soon as next week’s meeting, with markets now pricing a strong chance of a 25-basis-point cut. This dovish bias underpins demand for non-yielding assets and helps limit the current pullback.
From a data perspective, Tuesday brings no major US releases, leaving Silver primarily driven by USD fluctuations and broader market sentiment. Traders are already turning their attention to key indicators that could influence Fed expectations later in the week, with the Institute for Supply Management’s (ISM) Services Purchasing Managers Index (PMI) and ADP employment on Wednesday, followed by Personal Consumption Expenditures (PCE) on Friday, the Fed’s preferred inflation gauge. Softer readings would reinforce rate-cut bets, typically a supportive scenario for Silver.
Geopolitics also remains a background driver for safe-haven demand. Ongoing uncertainty surrounding Russia-Ukraine developments helps maintain a degree of risk aversion, even if Silver’s bullish momentum pauses for now.
Source: FXstreet.com
