Silver price jumps to near $23, supported by PBoC’s dovish stance.
The US economy is expected to grew by 2% in the third quarter of 2023.
Silver price looks set to deliver a breakout of the Inverted H&S pattern.
Silver price climbs to near $23 after the People’s Bank of China (PBoC) announced a liquidity booster to uplift the economy that is struggling to recover post-pandemic. The PBoC is set to infuse liquidity of $140 billions into the banking system to support vulnerable economic growth.
S&P500 futures have generated some gains in the European session, portraying a risk-on mood. 10-year US Treasury yields have dropped to near 4.16%. The US Dollar Index (DXY) falls slightly to near 103.20 as investors shift focus towards the United States Q3 Gross Domestic Product (GDP) data, which will be published at 13:30 GMT.
As per the preliminary consensus, the US economy grew at a slower pace of 2.0% after expanding 4.9% in the third quarter of 2023. A slower growth rate would undermine the argument supporting a restrictive interest rate policy atleast until second quarter ends.
The hopes for an interest rate-cut by the Federal Reserve (Fed) has already eased significantly as the US economy is resilient on the grounds of labor market and consumer spending. • As per the CME Fedwatch tool, chances in favour of an interest rate cut by 25 basis-points (bps) have dropped to 42.4%.
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