Silver Buoyed by Debts and War Tensions Ahead of Jackson Hole
Silver prices held steady above $69 an ounce on Friday, maintaining gains from the previous session. Investors were awaiting Federal Reserve Chair Kevin Warsh's speech at the annual Jackson Hole symposium for clues about US interest rates.
The markets are currently pricing in a 65% chance that the Fed will keep rates unchanged at its upcoming policy meeting in September. However, a hotter-than-expected US inflation reading strengthened expectations for a Fed rate increase before year-end, with the probability of a hike by December remaining above 70%.
The precious metals market continued to benefit from the so-called debasement trade, as the US Treasury's expanded debt buybacks heightened concerns over the risk of a US debt crisis and further dollar weakness. The escalating tensions in the Russia-Ukraine war also kept oil prices elevated.