Safe haven assets such as gold and silver attracted renewed interest from investors late last week as a flurry of US economic news releases, dovish Fed talk rhetoric and uncertain tariff developments, nudged money market participants to upwardly revise odds for a 25bps cut in September.
Despite a hotter than expected PCE print investors fixated upon the decisiveness of Fed officials who broadcasted their views for looser monetary policy conditions, such as Fed Governor Waller, and Fed President Mary Daly more recently, both of whom reaffirmed theirsupport for easing and lifted animal spirits in Wall Street. The fate of Fed Governor Cook still hangs at balance, as the ruling of whether she will be fired is still pending, with a deadline being set for tomorrow Tuesday the 2 nd of September, and markets await to see whether the integrity and independence of the Fed will be safeguarded or tarnished.
On the tariff front, markets are also awaiting for the final details and ruling of the Court of International Trade’s legal claim against the Trump administration’s global tariff agenda, for updating their forecasting models.
Federal courts are in the process of ruling whether Trump’s global tariffs, were illegally imposed under an emergency law and traders worldwide are monitoring carefully the developments since a decision upending the tariffs will most likely end up stirring up volatility across markets.
Hence for the time being, traders find resort in safe haven assets to protect themselves from unwarranted volatility and traverse through these tumultuous times until the storm weathers itself out. The bullion in steadily rising towards a new historic record high and silver has claimed a fresh 14-year high during today’s market open.
Technical Analysis
Silver Chart – Silver extends its parabolic ascent, captures fresh 14-year highs
Resistance: 41.00 (R1), 42.20 (R2), 43.40 (R3)
Support: 39.70 (S1), 38.50 (S2), 37.20 (S3)