The gain in precious metals has continued to expand this week, with silver recording a rise of over 4% on Thursday.
On Wednesday, Germany and the Eurozone reported August Services PMI figures that fell below expectations and remained below the threshold indicating economic expansion. This reflects the weakening of the service sector, which had supported economic resilience, thereby increasing the risk of recession. Additionally, the US August Markit Services and Manufacturing PMI figures also fell below expectations, leading to renewed doubts about the prospects of economic growth. These factors have bolstered the market’s conviction that the Federal Reserve’s monetary policy will shift in due course. The US dollar encountered resistance around the 104 mark, possibly paving the way for short-term rebounds in gold and silver.
Looking ahead, the market’s attention remains focused on the Jackson Hole Global Central Bank Symposium scheduled for this week, where officials from various central banks will deliver speeches. Federal Reserve Chair Powell is set to deliver a speech on the economic outlook this Friday evening, and the market will seek guidance on the future direction of the Federal Reserve’s monetary policy.
Furthermore, in the early hours of Friday, the US Treasury will auction 30-year Treasury Inflation-Protected Securities (TIPS), and the impact of the auction results on precious metals will be closely watched.
