US-China became enemies of silver! Silver prices reduced by 10 thousand in India

Silver Price Today: There has been a big decline in the price of silver for some time. Silver has reached a 6 to 7 week low in the Indian market. If we look at the data, the price of silver has come down by about 11 percent from the record high. According to experts, the fall in prices is being seen due to the reduced demand for silver and the decisions of the US Central Bank. According to experts, no special trigger is seen regarding silver in the coming days. By the way, the target for the end of the year is one lakh rupees. Let us try to understand in the language of figures how much has the price of silver gone?

Silver prices on MCX fell to a 6 to 7 week low of Rs 86,156 per kg on Wednesday due to the strengthening US dollar and rising Treasury yield after sharp comments by US Federal Reserve officials regarding rate cuts. The special thing is that in the last 4 trading days, the price of silver has seen a decline of 6 percent.

On Wednesday, when the Multi Commodity Exchange closed, the price of silver was seen at 86,900. Silver prices were at a lifetime high of Rs 96,493 per kilogram on May 29. Since then, it has seen a decline of 10.71 percent. This means that the price of silver has come down by Rs 10,337 per kg from the record high in a span of about a month.

What is the Fed saying

Federal Reserve Governor Michelle Bowman said on Tuesday that the central bank is not ready to lower rates and is ready to raise rates if inflation remains high. Similarly, Fed Governor Lisa Cook said that a rate cut may be appropriate at some point, but the timing is uncertain. San Francisco Fed Bank President Mary Daly said on Monday that the US central bank should not cut rates until policymakers are confident that inflation comes down to 2 percent. However, he also noted the threat of rising unemployment.

Interest rate cuts possible in September

In June, business in the US reached a 26-month high. Investors are now focused on the economic data coming this week for indications of the first rate cut. Although the possibility of a rate cut in the summer seems low, investors are confident that the Fed can potentially cut interest rates in September. According to the CME Group's Fed Watch Tool, traders currently see a 67.7 percent chance of a rate cut. The Fed kept interest rates unchanged at a 23-year high of 5.25 percent to 5.50 percent in its last policy meeting. In addition, the Fed revised its earlier estimate of three rate cuts to one.

Investors are keeping a close eye

This week, investors are closely monitoring key economic indicators, such as the US GDP estimate for the first quarter on Thursday and the Personal Consumption Expenditure (PCE) Price Index report to be released on Friday. The special thing is that if the data of personal consumption expenditure comes out better, then the price of silver can fall further. Meanwhile, looking at the economic outlook, there has been a decrease in American consumer confidence. At the same time, American families are very excited about the labor market and are expecting inflation to come down next year. Due to the strong labor market, the Fed has been able to keep interest rates high for a long time. On the other hand, the low demand from China has also affected the sentiment regarding silver.