XAG/USD bounces back to near $32.00 following China stimulus plans
The post XAG/USD bounces back to near $32.00 following China stimulus plans appeared on BitcoinEthereumNews.com.
Silver price retraces its recent losses as China’s fresh stimulus plans offset the fading effects of Tuesday’s measures. China plans to inject over CNY 1 trillion in capital into its largest state banks. The non-yielding Silver continues to receive support from rising odds of further Fed rate cuts. Silver price (XAG/USD) edges higher as China, the world’s largest metals market, announces plans for additional stimulus measures to bolster its economy, offsetting the diminishing effects of Tuesday’s earlier actions. Silver price trades around $32.00 per troy ounce during Thursday’s European hours. China plans to inject over CNY 1 trillion in capital into its largest state banks, which are facing challenges such as shrinking margins, declining profits, and increasing bad loans. This substantial capital infusion would mark the first of its kind since the 2008 global financial crisis. The safe-haven Silver also receives support from rising tensions in the Middle East. An Israeli airstrike on Beirut killed a senior Hezbollah commander on Tuesday, raising fears of a broader conflict as cross-border rocket attacks intensified. Meanwhile, the United States, France, and several allies have called for an immediate 21-day ceasefire along the Israel-Lebanon border “Blue Line” and expressed support for a ceasefire in Gaza, following intense discussions at the United Nations on Wednesday. The non-yielding Silver gained support following last week’s substantial 50 basis point rate cut by the US Federal Reserve (Fed). Moreover, rising expectations of additional Fed rate cuts in 2024 are enhancing the appeal of the commodity for investors amid low opportunity cost. According to the CME FedWatch Tool, markets are currently pricing in a roughly 50% probability that the Fed will implement a total of 75 basis points in rate cuts, bringing rates down to a range of 4.0-4.25% by year’s end. This has weakened the US Dollar (USD),…
Filed under: News - @ September 26, 2024 8:28 am