- Silver prices remain choppy as investors prepare for Powell’s speech in Jackson Hole.
- XAG/USD benefited from poor liquidity conditions and a weak greenback which, despite rising, offset the week’s highs.
- Fed’s Kashkari: Inflation is very high and the Fed will relax until new evidence shows inflation hitting 2%.
Silver prices remain subdued Wednesday night after Wall Street closed, with U.S. stocks posting minimal gains on a day characterized by low market volatility as traders prepare for the Fed Chairman’s speech, Jerome Powell, on Jackson Hole. As of this writing, XAG/USD is trading at $19.15 per troy ounce, up 0.13%.
On Wednesday, XAG/USD opened near the daily high of around $19.10 before plunging to daily lows of $18.93. However, bulls pushed white metal prices back, reclaiming the $19.00 figure and hitting a daily high of $19.22, before settling at current price levels.
Ahead of the opening of the New York Stock Exchange (NYSE), US durable goods orders for July jumped unexpectedly, data released by the US Department of Commerce showed. Overall orders were unchanged on a monthly reading while excluding defense and aircraft; Orders for so-called core durable goods rose 0.4%, beating estimates of 0.3%.
Later, U.S. pending home sales fell for the sixth straight month, collapsing 19.9% year-on-year, less than a 22% contraction, while month on month Elsewhere, they fell -1%, against -4% expected.
The U.S. dollar index, a gauge of the greenback’s value against a basket of six currencies, extended gains 0.09% to 108.600, while the 10-year U.S. 3.109%, gained six basis points.
On Tuesday, Minnesota Fed Chairman Neil Kashkari said inflation was very high and it was the Fed’s job to bring it down. He stressed the need to tighten monetary policy and added that the Fed could only ease rate hikes when it saw convincing evidence of inflation heading towards 2%.
What to watch
The US economic record will show the GDP growth rate for the second quarter, initial jobless claims and the Kansas City Fed manufacturing index for August.
Silver (XAG/USD) Major Technical Levels