

Market Analysis
Silver prices (XAG/USD) continue to decline for the second straight session, currently trading around $28.50 per troy ounce during early Monday trading. This downward trend is largely driven by improved risk sentiment following the release of the US Personal Consumption Expenditures (PCE) Index data for July on Friday, which led traders to reassess their expectations for a significant rate cut by the Federal Reserve in September.
Raphael Bostic, President of the Federal Reserve Bank of Atlanta and a known hawk on the Federal Open Market Committee (FOMC), hinted last week that the time might be approaching for rate cuts due to easing inflation and an unexpectedly high unemployment rate. FXStreet’s FedTracker, which assesses the tone of Fed officials' speeches on a dovish-to-hawkish scale from 0 to 10 using a custom AI model, rated Bostic’s comments as neutral with a score of 5.6.
According to the CME FedWatch Tool, there is a 70.0% probability that the Fed will implement at least a 25 basis point (bps) rate cut during its September meeting. Traders are now turning their attention to upcoming US employment data, including August's Nonfarm Payrolls (NFP), to gauge the likely direction and magnitude of future Fed rate cuts.
Silver, typically considered a safe-haven asset, may face additional downward pressure as widespread protests erupted in Israel on Sunday. The protests, driven by growing frustration over the government's inability to secure a ceasefire agreement, saw an estimated 500,000 people demonstrating in Jerusalem, Tel Aviv, and other cities. According to Reuters, protestors are urging Prime Minister Benjamin Netanyahu to take stronger action to secure the release of the remaining 101 hostages.
Paraphrasing text from "FX Street" all rights reserved by the original author.