Silver holds above $69 amid Fed-watch inflation and Warsh
Silver trades above $69/oz near its highest level since mid-June as a subdued dollar supports demand and markets await US July PCE inflation and Federal Reserve Chair Kevin Warsh’s Jackson Hole remarks.
Silver traded above $69 an ounce on Monday, hovering near its highest level since mid-June, as a subdued dollar supported demand for precious metals, while investors await US inflation data and comments from Federal Reserve Chair Kevin Warsh this week for further clues on the interest-rate outlook.
Silver gained more than 6% last week after a US Treasury buyback support plan pushed the dollar to multi-month lows.
Markets are focused on the July PCE price index due Wednesday and Warsh’s speech at the Jackson Hole Symposium on Friday.
Traders are currently pricing in roughly a 40% chance of a rate hike in September, compared with a 60% probability of rates remaining unchanged, according to CME FedWatch.
On the geopolitical front, the US threatened Iran with what it called “the greatest financial offensive ever marshalled,” as Washington prepares to impose economic sanctions targeting Iran’s trade partners.