XAG/USD depreciates to near $31.50, downside seems limited
The post XAG/USD depreciates to near $31.50, downside seems limited appeared on BitcoinEthereumNews.com.
Silver price loses ground as recent solid US labor data could increase the odds for another Fed’s bumper rate cut. Richmond Fed President Barkin warned that the fight against inflation may not be over as risks persist. The safe-haven Silver could regain its ground following the rising geopolitical tensions in the Middle East. Silver price (XAG/USD) retraces its gains recorded in the last two sessions, trading around $31.60 per troy ounce during the Asian hours on Thursday. This downside of the Silver price could be attributed to recent strong US labor data, which could increase the odds of the Federal Reserve (Fed) delivering another bumper rate cut in November. Lower interest rates reduce the opportunity cost of holding non-yielding assets like Silver, making it more appealing to investors. The ADP US Employment Change reported an increase of 143,000 jobs in September, exceeding the anticipated 120,000 jobs. Furthermore, annual pay increased by 4.7% year-over-year. The total number of jobs added in August was revised upward from 99,000 to 103,000. This report indicates that the labor market is in better condition than previously perceived at the start of the third quarter. Federal Reserve Bank of Richmond President Tom Barkin addressed the Fed’s recent rate actions on Wednesday, warning that the fight against inflation may not be over, as risks persist. Barkin noted that the 50 basis point rate cut in September was justified because rates had become “out of sync” with the decline in inflation, while the unemployment rate was near its sustainable level. However, the downside of safe-haven assets like Silver could be limited following the rising geopolitical tensions in the Middle East. The Israeli Broadcasting Authority (IBA) reported that Israel’s security cabinet has decided to issue a strong response to the recent Iranian attack. On Tuesday night, Iran launched over…
Filed under: News - @ October 3, 2024 4:19 am