- Silver prices saw some selling pressure around $38.80 during early European trading on Friday, marking a 0.52% decline for the day.
- The US GDP has shown stronger growth than previously estimated in the second quarter.
- Speculations about a possible rate cut by the Fed might lessen some of the negative impacts on silver prices.
On Friday morning in Europe, silver prices (XAG/USD) dropped to nearly $38.80. The metal seems to be taking a hit, with influences from the stronger US dollar (USD). Traders are anticipating the upcoming US Personal Consumption Expenditure (PCE) Price Index report later today, which might provide fresh insights.
The US Bureau of Economic Analysis (BEA) has released a revised estimate indicating an annual GDP growth rate of 3.3% for Q2 of 2025, which is better than previously thought. This upbeat report on US GDP eases some immediate pressure on the Federal Reserve, potentially influencing interest rates and offering some support for the USD while applying downward pressure on USD-denominated commodities.
Still, many traders remain cautious due to weaker job data, which leads them to expect rate cuts in the Fed’s meeting next month. This anticipation might help mitigate the downside for silver. John Williams, president of the New York Fed, mentioned on Wednesday that while interest rates are likely to drop eventually, future data will guide whether cuts are appropriate next month. Lowering interest rates could make holding silver less costly, potentially benefiting the metal.
