Silver Nears $42.40 on Fed Signals
Silver prices (XAG/USD) continued Thursday's gains and approached $42.40/oz during Friday's European session. Sentiment was boosted by expectations of policy easing after the Federal Reserve began its interest rate cut campaign amid concerns about a weakening US labor market.
On Wednesday, the Fed cut interest rates by 25 bps to a range of 4.00%–4.25% and signaled two more cuts by year-end, via the dot plot. A lower interest rate environment is typically positive for non-yielding assets like silver.
Fed Chairman Jerome Powell emphasized that US labor demand is slowing and the balance of risks has shifted, necessitating a rate adjustment. He added that he could no longer call the labor market "very solid," reinforcing the case for gradual easing.
For further guidance, the market is awaiting a speech by San Francisco Fed President Mary Daly at 18:30 GMT for clues on the pace of rate cuts at upcoming meetings.
Key points:
XAG/USD rose near $42.40 during the European session.
The Fed dropped 25 bps to 4.00%–4.25%; signaling two more cuts this year.
Lower interest rates → support silver (a non-yielding asset).
Powell: Weakening labor market, gradual easing.
The market awaits Mary Daly's speech (18:30 GMT) for further direction. (ayu)
Source: Newsmaker.id
