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Silver price could advance further due to dovish sentiment surrounding the Fed’s policy outlook. The safe-haven Silver received support from the escalated geopolitical tensions in the Middle East. Iranian Supreme Leader Ali Khamenei has called for a direct retaliation against Israel following the assassination of Hamas leader. Silver price retraces its recent gains, trading around $28.90 per troy ounce during the Asian hours on Thursday. However, the price of the grey metal gained ground due to the dovish sentiment surrounding the Federal Reserve’s (Fed) policy trajectory. Fed decided to keep rates unchanged in the 5.25%-5.50% range at its July meeting on Wednesday. Lower interest rates would drive the appeal of the non-yielding assets like Silver higher. During a press conference after post interest rate decision, Federal Reserve Chair Jerome Powell stated that a rate cut in September is “on the table.” Powell added that the central bank will closely monitor the labor market and remain vigilant for signs of a potential sharp downturn, per Reuters. US ADP Employment Change rose 122,000 in July and annual pay was up 4.8% year-over-year, data reported on Wednesday. This reading followed the 155,000 increase (revised from 150,000) recorded in June and came in below the market expectation of 150,000. Traders will look for further direction from the US economic data including ISM Manufacturing PMI and weekly Initial Jobless Claims, which are scheduled for release later on Thursday. Safe-haven Silver has also gained support due to heightened geopolitical tensions following the assassination of Hamas leader Ismail Haniyeh in Iran. According to the New York Times on Wednesday, Haniyeh was killed in Iran’s capital after attending the new president’s inauguration. Both Iranian officials and Hamas have accused Israel of being behind the strike. In response, Iranian Supreme Leader Ali Khamenei has reportedly called for a direct retaliation…

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Filed under: News - @ August 1, 2024 6:20 am