Silver Holds Near Peak, Supported by Fed Rate Cut Speculation
Silver prices held steady around $37.8 per ounce on Wednesday (August 6th), after posting three consecutive sessions of gains. This increase was driven by growing expectations that the Federal Reserve will cut interest rates soon, amid slowing US economic data.
The July ISM Services PMI data showed weak service sector growth, declining employment, and persistently high price pressures. These results reinforce signals that the US labor market is beginning to weaken, following last week's below-expected nonfarm payrolls report.
The market now expects two Fed rate cuts before the end of the year, with the first likely at the September meeting. San Francisco Fed President Mary Daly reiterated her dovish outlook, citing a weak labor market and the limited inflationary impact of Trump's tariffs.
Political uncertainty also supported silver prices, following the resignation of Fed Governor Adriana Kugler. This raises concerns about the central bank's independence and opens the door for President Trump to appoint a successor who leans more toward looser policies. (ayu)
Source: Newsmaker.id
