Silver holds above $69 as Warsh Jackson Hole remarks awaited
Silver was held above $69 an ounce on Friday as investors awaited Federal Reserve Chair Kevin Warsh’s Jackson Hole speech for clues on US interest-rate outlook. Markets priced a roughly 65% chance rates are kept unchanged in September.
Silver held above $69 an ounce on Friday, maintaining gains from the previous session as investors awaited Federal Reserve Chair Kevin Warsh’s speech at the annual Jackson Hole symposium later in the global day for clues about the outlook for US interest rates.
Markets are currently pricing in around a 65% chance that the Fed will keep rates unchanged at its upcoming policy meeting in September.
Still, a hotter-than-expected US inflation reading strengthened expectations for a Fed rate increase before year-end, with the probability of a hike by December remaining above 70%.
Meanwhile, precious metals continued to benefit from the so-called debasement trade, as the US Treasury’s expanded debt buybacks heightened concerns over the risk of a US debt crisis and further dollar weakness.
On the geopolitical front, oil prices remained elevated as escalating tensions in the Russia-Ukraine war offset signs of diplomatic progress in the Middle East.