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Home Silver Price Silver Finds Support Amidst Dollar Weakness, Uncertainty Prevails(May 30)

Silver Finds Support Amidst Dollar Weakness, Uncertainty Prevails(May 30)

by anna

Silver prices (XAG/USD) found temporary support near $31.20 during Thursday’s American session, following a correction from a weekly high of $32.30. The white metal’s resilience emerged as the US Dollar extended its decline, prompted by the United States Department of Labor’s report indicating a higher number of individuals claiming initial jobless benefits for the week ending May 24. The figure stood at 219K, slightly above estimates of 218K and the previous reading of 216K.

Additionally, the revised US GDP data for the first quarter revealed a slower growth rate compared to preliminary estimates, further weighing on the US Dollar. The second estimate indicated a 1.3% expansion, down from the initial 1.6% growth.

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The US Dollar Index (DXY) continued its downward trajectory, reaching 104.76. A weaker dollar typically favors dollar-denominated assets like silver.

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However, uncertainty looms over the near-term outlook for silver prices, particularly ahead of the release of the United States core Personal Consumption Expenditure Price Index (PCE) data for April on Friday. Analysts anticipate steady growth in both annual and monthly core PCE inflation readings, projected at 2.8% and 0.3% respectively.

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The Federal Reserve closely monitors the PCE inflation gauge, and its trajectory will significantly influence speculation regarding potential Fed rate cuts, particularly in September. Presently, financial markets anticipate a gradual reduction in interest rates starting from the last quarter of the year, but the outcome of the PCE data could potentially alter these expectations.

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