Silver Threatens Further Decline, CPI a Key Factor
Silver prices held steady around US$76 per ounce on Friday (February 13th), but still recorded a decline for the third consecutive week. The pressure came after a major sell-off on Thursday, when volatility increased again and drove a decline in a number of risk assets.
Thursday's decline was not triggered by a clear catalyst, but the simultaneous decline in stocks and crypto assets indicated forced liquidation across asset classes. This condition is suspected to be exacerbated by systematic and algorithmic transactions that tend to accelerate selling during market volatility.
Investors' attention is now focused on the release of the latest US inflation data, which could potentially influence Federal Reserve interest rate expectations. Stronger-than-expected US employment data at the start of the week reduced the likelihood of an interest rate cut in the near future. Markets are now expecting the first rate cut to occur in July, rather than June, although there are still expectations of a total of around two 25 basis point cuts by the end of the year.
Meanwhile, silver and other precious metals could potentially draw support from concerns about currency debasement. In such situations, some investors tend to shift funds from fiat currencies and government bonds to real assets such as precious metals, which are considered more capable of maintaining value in the long term. (asd)
Source: Newsmaker.id
