Silver Price Consolidates Around $29.50 as Traders Await FOMC Minutes
Silver price (XAG/USD) is holding steady around $29.50 per troy ounce as traders gear up for the release of the FOMC Minutes this week. With the Federal Reserve expected to make significant rate cuts in the near future, the safe-haven appeal of Silver may face challenges.
The Fed is anticipated to reduce rates by 100 basis points by the end of 2024, which could limit the downside risk for Silver. However, uncertainty looms as analysts debate whether the Fed will opt for a 25 or 50 basis points cut at its September meeting.
Market sentiment is shifting, with CME FedWatch Tool indicating a 67.5% probability of a 25 basis points rate cut in September, down from 76% previously. The likelihood of a 50 basis points cut has also decreased to 32.5%.
Federal Reserve Governor Michelle Bowman has urged caution in making policy changes, citing inflation risks. Meanwhile, tensions in the Middle East are easing, potentially reducing Silver’s safe-haven status.
In conclusion, Silver’s price movement hinges on the upcoming FOMC Minutes, Fed’s rate decisions, and geopolitical developments. Investors should keep a close eye on these factors to navigate the Silver market effectively and make informed investment decisions.