Silver Prices Stabilize Following Warsch’s Comments

Silver in the Economic Context

Silver prices stabilized above $59 per ounce on Thursday after hitting a 7-month low during recent trading sessions, This followed remarks by Federal Reserve Chairman Kevin Warsh that inflation expectations had declined over the past month, suggesting there is no urgent need to raise interest rates.

However, Warsh reaffirmed the central bank’s commitment to restoring price stability.

Data released on Wednesday also showed a greater-than-expected slowdown in U.S. private-sector hiring last month, while investors are now awaiting the nonfarm payrolls report later today for fresh insights into labor market conditions and the Fed’s policy outlook.

Markets continue to price in a more than 60% probability of a Fed rate hike in September.

Silver from a Technical Perspective

Silver is trading within an ascending price channel on the hourly chart and is attempting to rise toward the upper boundary of this channel near the $61 to $61.50 per ounce levels, which, if broken, would likely lead to the next targets near $64.00 per ounce.

A rally from current prices toward the upper boundary of the channel is possible. However, if prices pull back first, the $58.00 to $57.50 per ounce range could present good buying opportunities for the same targets.

This scenario would fail if prices break below the $57.00 level.