Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Traders attempting to call the top in silver keep being proven wrong. For the first time in history, spot silver breached $60 per ounce after surging 4.3% during yesterday’s session. The white metal pushed even higher this morning as Asian markets opened for the day, climbing up to $61.50 without being challenged. The latest move translates to a 110% gain so far this year, making gold’s 60% rise seem almost tame in comparison. While the most recent push in silver was unmatched by other metals, precious or otherwise, platinum and palladium also put in respectable performances yesterday, rising 2.8% and 2.2% respectively. Supply and demand dynamics are still largely responsible for the rise in prices, although expectations for a rate cut on the dollar are also playing their part.
The agonising wait draws to an end. In a few hours, the Federal Reserve will deliver its verdict and the fate of the dollar will be sealed – until January anyway. CME’s FedWatch has been stable over the past few days, predicting a 25-bps cut with an 85 to 90% probability. Should the prediction hold, the target interest rate will be brought down to 3.50-3.75% and will mark the third cut of the year.
Beyond the decision itself, markets should be curious as to just how united the committee members are with regard to today’s decision. While the Fed may indeed deliver a rate cut, it may do so only begrudgingly, leaving little hope for further rate cuts in the near future.
The inbound rate decision looms over financial markets in general, but perhaps none more so than cryptocurrencies. Bitcoin showed some unexpected signs of life yesterday, pushing towards $95,000 before settling back down to around $92,500 at the time of writing. The move coincided with the debut of crypto treasury firm Twenty One Capital (XXI) on the NYSE on Tuesday. The firm is majority-owned by Tether and Bitfinex and currently owns over 43 thousand Bitcoin. In a statement earlier in the month, the firm said that it “intends to become a leading vehicle for capital-efficient bitcoin accumulation”.
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