Silver Holds Advance on Dovish Fed Bets
Silver held around $37.8 per ounce on Wednesday after rising for three straight sessions, as expectations for Federal Reserve rate cuts continued to build.
The latest ISM Services PMI for July pointed to sluggish growth, declining employment, and persistent price pressures, reinforcing signs of a cooling labor market after last week’s weaker-than-expected payrolls report.
Markets are now pricing in two Fed rate cuts by year-end, with the first possibly arriving in September. San Francisco Fed President Mary Daly echoed this dovish tone, citing labor market softness and the limited inflationary impact of Trump’s tariffs.
Silver was also boosted by political uncertainty following the resignation of Fed Governor Adriana Kugler, which raised concerns about central bank independence and opened the door for President Trump to appoint a more dovish successor.
Source: Trading Economics