Silver Rebound Continues, Held Back by Strong Dollar Ahead of Jackson Hole
Silver (XAG/USD) continued its rebound for the second straight day on Thursday, although gains were capped by a stronger US dollar and rising Treasury yields ahead of Jerome Powell's speech at the market-focused Jackson Hole symposium, keeping risk appetite for the precious metal cautious.
Recent US data provided mixed signals: S&P Global reported the flash Composite PMI for August rose to 55.4, while manufacturing jumped to 53.3—both indicating solid expansion. At the same time, weekly jobless claims rose by 11,000 to 235,000, adding to signs of a labor market slowdown. The combination of "improving growth but a slowing labor force" has the market reassessing how aggressively the Fed can ease policy.
Looking ahead, silver's direction will be largely determined by Powell's tone: if he is hawkish or neutral-tight, the dollar could remain strong and pressure XAG; conversely, a clear signal toward a rate cut could trigger a relief rally in the precious metal. With Jackson Hole being a policy-heavy venue, short-term volatility has the potential to increase, making the US$37.5–38.2 range a worthy initial monitoring area until the speech is released.
Source: Newsmaker.id
