XAG/USD holds ground above $29.50 as Fed’s Powell turns dovish
The post XAG/USD holds ground above $29.50 as Fed’s Powell turns dovish appeared on BitcoinEthereumNews.com.
Silver price appreciates as Fed Chair Jerome Powell believes that the central bank is getting back on the disinflationary path. The non-yielding Silver might gain ground as recent US inflation data raised the expectations of the Fed reducing rates in 2024. Safe-haven Silver might attract investors as Israeli forces conducted airstrikes across the southern Gaza Strip on Tuesday. Silver price (XAG/USD) continues its winning streak for the fifth day, trading around $29.70 per troy ounce during the Asian session on Wednesday. The price of silver is possibly bolstered by investor reaction to Federal Reserve (Fed) Chair Jerome Powell’s somewhat dovish remarks. On Tuesday, Powell said that the Fed is getting back on the disinflationary path. However, Powell wants to see further evidence before cutting interest rates as the US economy and the labor market remain strong, per Reuters. Additionally, Chicago Federal Reserve Bank President Austan Goolsbee cautioned on Tuesday during an interview with CNBC, stating, “I see some warning signs that the real economy is weakening.” Goolsbee further mentioned that progress toward the Fed’s 2% inflation target could accelerate more swiftly than anticipated. The price of the grey metal also gained ground as the recent US inflation data raised the expectations of the Federal Reserve (Fed) reducing interest rates in 2024. US Personal Consumption Expenditures (PCE) Price Index increased by 2.6% year-over-year in May, down from 2.7% in April. Lower interest rates could spark the demand of non-yielding assets like Silver. Geopolitical tensions persist in the Middle East as Israel intensifies its operations in Gaza, prompting Palestinians to evacuate Khan Younis amid fears of further attacks. Israeli forces conducted airstrikes across the southern Gaza Strip on Tuesday, leading to widespread displacement among Palestinians. These developments, reported by Reuters, highlight heightened tensions and may bolster demand for safe-haven assets such as…
Filed under: News - @ July 3, 2024 6:18 am