Market Analysis

Silver prices have recovered some of the losses incurred on Thursday, currently trading around $29.70 per troy ounce during Asian trading hours on Friday. This rebound comes as investors exercise caution following the release of higher-than-expected Initial Jobless Claims by the US Department of Labor on Thursday. The data has bolstered dovish expectations that the Federal Reserve (Fed) may implement a rate cut in September.

For the week ending May 10, the number of Americans filing new claims for jobless benefits rose to 222,000, surpassing the market consensus of 220,000 but falling below the previous week's figure of 232,000.

On Thursday, Fed Bank of Atlanta President Raphael Bostic emphasized the importance of patience with interest rates, citing persistent pricing pressures in the US economy. Similarly, Cleveland Fed President Loretta Mester suggested that it might take longer than expected to confidently determine the inflation trajectory, advocating for the Fed to maintain its restrictive stance for an extended period.

According to Reuters, Atlanta Fed President Raphael Bostic reiterated the need for patience with interest rates during an event in Jacksonville, noting ongoing pricing pressures in the US economy. Cleveland Fed President Loretta Mester also highlighted that understanding the inflation trajectory might take more time than anticipated, supporting a prolonged restrictive monetary policy.

In the absence of major economic data from the US, market participants are likely to focus on Fedspeak for clues about the future direction of the Fed's monetary policy. Later on Friday, speeches by Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly are expected to provide valuable insights.

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Paraphrasing text from "FX Street" all rights reserved by the original author.