On Friday, XAG/USD settled at $38.15, up $0.25 or +0.66%.
Powell’s Labor Market Warning Sparks Rate Cut Bets
In his final Jackson Hole appearance, Powell noted that rising downside risks in the labor market may warrant a shift in the Fed’s stance. Though he refrained from confirming a September cut, traders saw the door open. Fed fund futures rapidly repriced, with CME’s FedWatch tool showing odds of a 25-basis point September cut soaring to 91%, up from 72% earlier in the day.
This commentary sent Treasury yields tumbling, with the 2-year yield down nearly 10 basis points to 3.698%, and the 10-year to 4.256%. These declines immediately boosted non-yielding assets, pushing both gold and silver sharply higher.
