Key Takeaways:
– Silver price edges lower as traders wait for US inflation data release
– Uncertainty over Fed interest rate cut impact on non-yielding assets like Silver
– Likelihood of 50 bps rate cut by Federal Reserve slightly decreases to 29.0%
Silver Price Movement
Silver price (XAG/USD) near $28.30 per troy ounce
Traders cautious ahead of US inflation report for insight on potential Fed rate cut
Interest rate changes impact non-yielding assets like Silver
Market Uncertainty
US labor data raises doubts over Fed rate cut scale
August NFP added 142,000 jobs, slightly below forecast
Unemployment Rate fell to 4.2% as expected
Fed’s Rate Cut Expectation
CME FedWatch Tool predicts at least a 25 bps rate cut in September
Likelihood of 50 bps cut decreases to 29.0%
Chicago Fed President’s comments suggest policy adjustment imminent
Silver FAQs
– Silver is precious metal traded among investors
– Used as store of value, medium of exchange, and hedge
– Factors affecting prices include geopolitical instability, interest rates, USD value, industrial use, and economic dynamics.