Mumbai, 06 May (CommoditiesControl): MCX silver prices experienced a notable uptick today, rising by 1.35% and currently trading at 82140. If prices manage to maintain above the 82500 levels, the next target could potentially reach 84000. Similarly, U.S. silver prices also saw a matching increase of 1.35%, trading at $26.91, after finding support at the $26 mark.
This upward movement is attributed to market expectations of a Federal Reserve interest rate cut later in the year, coupled with escalating tensions in the Middle East, which bolstered the appeal of bullion.
Gold prices also saw an uptick of 0.50% amidst the ongoing conflict in Gaza, as prospects for a ceasefire remain uncertain. Hamas has reiterated its demand for an end to the war in exchange for the release of hostages, a demand firmly rejected by Israeli Prime Minister Benjamin Netanyahu.
Additionally, recent data revealing a slowdown in U.S. job growth for April reinforced expectations of an impending interest rate cut by the Federal Reserve. According to the Institute for Supply Management (ISM), the non-manufacturing PMI fell to 49.4 from 51.4 in March.
Market indicators are currently pricing in a 67% chance of a U.S. rate cut in September, as per CME's FedWatch Tool. Lower interest rates are expected to diminish the opportunity cost of holding bullion, thereby boosting its attractiveness to investors.
(By Commoditiescontrol Bureau; +91-9820130172)
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