Silver Holds Ground Around $34.50 On Safe-Haven Demand
Silver (XAG/USD) prices moved higher after posting losses in the previous two consecutive sessions, trading around $34.50 per troy ounce during Asian trading hours on Thursday (05/06). Prices of precious metals, including silver, have been supported by safe-haven flows amid rising global economic and political uncertainty.
Non-yielding assets such as silver were supported after the release of weak economic data from the United States (US), which strengthened the possibility of the Federal Reserve (Fed) cutting interest rates at least twice in 2025.
The Institute for Supply Management (ISM) Services Purchasing Managers’ Index (PMI) fell to 49.9 in May, from 51.6 in April. This reading was surprisingly lower than the 52.0 expected. Meanwhile, US ADP private sector employment increased by 37,000 in May, compared to a 60,000 increase (revised from 62,000) recorded in April, well below market expectations of 115,000.
Traders will likely be eyeing the US Trade Balance and weekly Initial Jobless Claims later in the North American session. Focus will shift to Friday’s Nonfarm Payrolls for further insights into the Fed’s policy outlook.
US President Donald Trump called on Federal Reserve (Fed) Chairman Jerome Powell in a post published on Truth Social on Wednesday to lower policy rates. “ADP NUMBERS ARE OUT!!! The ‘Late’ Powell must now LOWER RATES. He was great!!! Europe has cut them NINE TIMES,” Trump said.
On Wednesday, Minneapolis Fed President Neel Kashkari noted that the labor market is showing some signs of slowing. However, uncertainties remain in the economy, and the Fed should maintain a wait-and-see attitude to assess how the economy responds to those uncertainties.
Source: FXStreet
