Silver Steady, Bullish Momentum Post-Trump-Fed Polemic
Silver prices held steady, trading in the range of $38.5–$38.8 per troy ounce on Tuesday. This rebound was supported by safe-haven demand following market concerns about the Fed's independence after US President Donald Trump announced the dismissal of Fed Chair Lisa Cook. A cautious tone drove flows into the precious metal, while intraday movements showed silver attempting to re-approach the $39.00 area.
On the macro front, the US Dollar Index (DXY) fluctuated between 98.3–98.5, as the market assessed the potential consequences of Trump's action against Cook and its implications for the direction of interest rate policy. A subdued dollar helped support USD-denominated commodities like silver. Sentiment was also influenced by market concerns about increased political interference in central banks, which has fueled a preference for safe-haven assets.
Market participants' focus will now turn to the release of second-quarter GDP and the PCE Price Index later this week—a series of data that could move the dollar, yields, and risk appetite. If the data strengthens the dollar or pushes yields higher, silver's rally could be halted. conversely, a weaker number could potentially keep XAG/USD's upside bias in check.
Source: Newsmaker.id
