Silver (XAG/USD) accelerates on Thursday and trades around $69.50 at the time of writing, up 2.74% on the day.
The white metal is approaching the upper end of the range that has contained price action this week, as investors turn their attention to the Jackson Hole Symposium
The main catalyst is now the speech from Federal Reserve (Fed) Chair Kevin Warsh, scheduled for Friday. Markets will look for indications about how the US central bank assesses persistent inflationary pressures and what they could mean for the interest rate outlook. At the July monetary policy meeting, Kevin Warsh did not provide specific guidance on the Fed’s next moves but reaffirmed the central bank’s commitment to bringing inflation back toward its 2% target.
A similar message on Friday could reinforce expectations that interest rates will remain elevated for longer, an environment generally unfavorable for Silver, which offers no yield. Recent US data continue to point to persistent inflationary pressures. The Personal Consumption Expenditures (PCE) Price Index released on Wednesday suggests that inflation remains above the Fed’s target, although recent price indicators do not show a renewed sharp acceleration.