Profit-Taking Dampens Silver, DXY Gains Slightly
Silver (XAG/USD) prices trended lower below $39.0 per ounce during Friday's European session, after this week's rally pushed it near a one-month high. Profit-taking and a slight strengthening dollar weighed on intraday prices. According to Reuters, silver briefly reached $39.10 earlier in the day, having touched $39.12 the day before—its highest level since July 25—as gold prepared to close August on a positive note.
The next direction will be largely determined by tonight's US core PCE inflation release. Consensus forecasts a 0.3% m/m increase and a 2.9% y/y increase—a potential third consecutive annual increase. A hotter reading risks strengthening the dollar and yields, holding silver below the $39-$40 area. Conversely, a figure in line with or below expectations could revive the push toward $40 as yields decline and safe-haven demand increases.
From a policy perspective, the probability of a 25 bps Fed rate cut in September remains high (around 85–87%), especially since Fed Governor Christopher Waller reiterated his support for a quarter-point rate cut and opened up room for further easing in the next 3–6 months. These easing expectations support non-yielding metals like silver, although volatility could potentially increase ahead of tonight's data.
Source: Newsmaker.id
