Silver Tops $37.70 as Fed Rate Cut Bets Intensify
Silver climbed above $37.70 per ounce on Tuesday, hitting its highest level since July 29, as growing expectations of Federal Reserve rate cuts continued to lift precious metals.
A soft ISM Services PMI for July—showing sluggish growth, falling employment, and rising price pressures—added to signs of a cooling labor market, following a weaker-than-expected payrolls report. The data reinforced market bets that the Fed may cut rates twice before year-end, possibly starting in September.
San Francisco Fed President Mary Daly supported this view, pointing to a softening labor market and the absence of lasting inflation from tariffs.
Gold also benefited from political uncertainty, as Governor Adriana Kugler’s resignation raised concerns over the Fed’s independence and opened the door for President Trump to nominate a more dovish replacement, amid his latest tariff push.
Source : Trading Economics