Silver Steady Ahead of US Data
Silver hovered just below $44/oz on Thursday, holding near a 14-year high. The market is awaiting two key US data points for clues on the Fed's policy direction: weekly jobless claims (today) and the PCE price index (Friday), the Fed's preferred inflation gauge.
Recent comments from Fed officials have further clouded expectations of easing. Traders are no longer fully pricing in a rate cut next month, and the market expects a total of 43 basis points of cuts at the final two meetings of the year. Fed Chairman Jerome Powell also noted that the inflationary impact of tariffs has so far been at the lower end of expectations, opening room for a less restrictive stance.
On the industrial front, silver's fundamentals remain strong. Limited supply coupled with resilient demand from the solar, electric vehicle, and electronics sectors has helped support prices despite the Fed's unclear signal.
Going forward, silver's direction will largely depend on surprises from jobless claims and PCE data. Weaker-than-expected data could strengthen the case for a cut and push silver higher, while stronger data risks depressing prices through a stronger US dollar and expectations of higher interest rates.
Key Points:
Silver is stable below $44/oz, near a 14-year peak.
The market is awaiting jobless claims and PCE for direction from the Fed.
Easing expectations are weakening; interest rates this year are expected to be -43 bps in total.
Strong industrial demand (solar, EVs, electronics) and tight supply support prices. (ayu)
Source: Newsmaker.id
