Silver Plays Catch-Up as Gold Price Hits a Record

Silver was higher on Wednesday ahead of another speech from Fed Chair Jerome Powell. However, there was further patience on interest rates.

Silver – Daily Chart

Silver – Daily Chart 

Silver is approaching the $27 level and could take out the levels ahead of $30. 

Powell reminded investors that the US central bank has time to wait for its first interest rate cut due to economic strength and recent high inflation readings. 

“Recent readings on job gains and inflation have come in higher than expected,” Powell said. However, Recent data do not materially change the overall picture, which continues to be one of solid growth, a strong but rebalancing labour market, and inflation moving down toward 2% on a sometimes bumpy path.” 

“If the economy evolves broadly as we expect,” Powell added, he and his fellow policymakers believe a lower policy interest rate will be required “at some point this year.” 

His comments kept markets on track for rate cuts, but gold has also seen demand from central banks due to a desire to diversify from the US dollar. Ukraine also continues to attack Russian infrastructure, and there is a general mood of shaky geopolitics. 

However, analysts at ING said that ETF holdings in gold do not align with the sharp price rally in March. ETF holdings continue to decline, currently at 82moz, down from 85.6moz earlier in the year. “There is plenty of room for investors to buy the gold market, but maybe we need to wait for the Fed to actually start cutting rates,” they said. 

Markets will focus on the US jobs number on Friday, where a substantial number could hurt gold. Silver has hit a two-year high recently and will also take its direction from gold and the jobs number on Friday.

Recent News
Start Trading Now!

Try our demo account for free to learn trading. When you’re ready, switch to the live account and start trading for real.

Popular posts

ATFX

The Firm has taken the decision to cease providing services to retail clients, with immediate effect. We are therefore unable to accept any applications.

Services to professional clients will not be impacted. For professional applications please contact [email protected]

ATFX

Restrictions on Use

Products and Services on this website https://www.atfx.com/en-ae/ are not suitable
in your country. Such information and materials should not be regarded as or
constitute a distribution, an offer, or a solicitation to buy or sell any investments.
Please visit https://www.atfx.com/en/ to proceed.

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/en/

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/