Silver Prices Rise Supported by Fed Rate Cut Expectations
Silver prices (XAG/USD) continued their rise for the second consecutive day, trading around $38.20 per troy ounce in the Asian session Friday morning. Non-yielding silver attracted buying interest as the chances of the Federal Reserve (Fed) cutting interest rates in September increased.
According to data from CME FedWatch, the market now predicts a 93% probability that the Fed will cut interest rates by 25 basis points at its September meeting, a significant increase from 48% last week. This expectation also includes the potential for an additional rate cut in December.
The increased likelihood of a rate cut was fueled by rising US initial jobless claims data, indicating a slowing labor market. The July Nonfarm Payrolls (NFP) report had previously shown signs of cooling in the US employment sector.
The latest data showed that US initial jobless claims rose to 226,000 for the week ending August 2, exceeding the market forecast of 221,000 and higher than the previous week's 218,000.
Source: Newsmaker.id