Silver consolidates when the expectations of the rate reduction build
Silver (XAG/USD) trades at $ 32.55, slightly above his session low of $ 32.43. The metal retains, with support from a softer American dollar and increased speculation that the Federal Reserve will alleviate the policy in the coming months. However, concern about global trade and modest investor activities limit the most important price fluctuations.
The US dollar continues to float lower as the markt price in multiple fed rate reductions in 2025. Economic data indicate the delay of the momentum, which means that the expectations of policy adjustments can be strengthened that cannot provide assets such as gold and silver.
The first unemployed claims of the US fell to 221,000 last week, lower than expected. However, this had little impact on the dollar or gold, because attention will remain in the coming NFP report. Predictions suggest that job profit of 160,000 in February, with the unemployment rate that is expected to be 4%.
FED Policy and Economic Signals are the path of Gold
Federal Reserve officials have recognized economic risks and strengthened the expectations of any rate reductions. Philadelphia Fed President Patrick Harker and Fed President Raphael Bostic have pointed out at Atlanta to delay the growth as a concern, which suggests that policy adjustments can be justified. In the meantime, Fed Gouverneur Christopher Waller indicated that he does not support a rate reduction in March, but not exclusion later in the year when inflation decreases further.
Market sentiment also adapts to shifts in trade policy. Trump’s temporary exemption from rates on Canadian and Mexican goods has introduced new variables for companies and investors, which influence a broader market positioning.
China prepares extra stimulus measures. Finance Minister Lan Foan has the willingness of the government to support economic growth if necessary, while the People’s Bank of China Gouverneur Pan Gongsheng has suggested that reductions of the interest and reserve demand (RRR) could be considered.