Silver Analysis 5-August-2024

Silver held near $29 per ounce, hovering at a one-week high. The US Federal Reserve held interest rates steady on Wednesday but indicated a willingness to start cutting rates in September if inflation continues to moderate.

Silver Analysis 5-August-2024

Markets are fully priced for a 25 basis point rate cut in September, with over 70 bps in total easing seen this year. Meanwhile, the Bank of England delivered a 25 basis point rate cut to 5% this week, while the Bank of Japan raised its policy rate to around 0.25% to normalize monetary settings.

Silver also found support from safe-haven bids following the killing of a Hamas leader in Iran, with traders assessing its potential impact on the broader Middle East conflict. Moreover, base metals got a boost after China’s leaders pledged to step up support measures and stabilize market confidence at a Politburo meeting this week.