Silver price clings to gains above $27.00 as Fed rate cuts in September seems imminent.
Investors divided over size of Fed’s interest-rate cuts in September.
Fears of global slowdown have been diminished by lower US jobless claims and China’s hot inflation data.
Silver price (XAG/USD) holds onto gains above the crucial support of $27.00 in Friday’s New York session. The white metal clings to gains as a move towards policy-normalization from the Federal Reserve (Fed) seems certain in September. However, investors divide over the size of interest-rate cuts.
According to the CME FedWatch tool, 30-day Federal Funds Futures pricing data shows that traders see a 56.5% chance that interest rates will be reduced by 50 basis points (bps) in September. The likelihood of 50 bps rate cuts has dropped in a week as fears of global slowdown have diminished after lower-than-expected United States (US) Initial Jobless Claims and hot China’s Consumer Price Index (CPI) data for July.
The US Dollar (USD) exhibits a subdued performance as Fed rate cuts in September seems certain. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, corrects to near 103.15 from four-day high of 103.50. 10-year US Treasury yields slump to near 3.93%.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.