Advertisements
Home Silver Price Silver Prices Rise Amid Economic Data and Geopolitical Tensions (July 11)

Silver Prices Rise Amid Economic Data and Geopolitical Tensions (July 11)

by anna

Silver prices (XAG/USD) have advanced for the third consecutive session, reaching approximately $31.00 per troy ounce during Asian trading hours on Thursday. The upward movement is attributed to cautious investor sentiment ahead of the release of the US Consumer Price Index (CPI) data for June, which is expected to provide insights into the Federal Reserve’s future monetary policy decisions. The anticipation of higher interest rates has tempered demand for non-yielding assets like silver.

Analysts’ forecasts suggest that the annualized US core CPI for June will likely hold steady at 3.4%, while headline CPI inflation is projected to rise to 0.1% month-over-month, compared to the previous flat reading of 0.0%.

Advertisements

Federal Reserve Chairman Jerome Powell’s recent comments have also influenced market sentiment. Powell emphasized the importance of closely monitoring the labor market, noting significant challenges, while expressing confidence in the declining trend of inflation. He reiterated that any policy rate cuts would depend on further data supporting a sustainable path towards the Fed‘s 2% inflation target.

Advertisements

Geopolitically, tensions have escalated in the Middle East following Israeli military actions in northern and central Gaza, including an airstrike on a tent encampment, which resulted in the deaths of at least 29 people, primarily women and children. The incident has heightened concerns about a potential escalation in the conflict and increased demand for safe-haven assets like silver. Hamas has warned that continued Israeli operations could jeopardize ceasefire negotiations scheduled to resume in Doha.

Advertisements

Investors are closely monitoring these developments alongside economic data releases for further cues on market direction.

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com