FX.co ★ Silver Falls on Profit-Taking

Silver prices dipped to around $38 per ounce on Monday, as part of a reversal of some of the gains from the previous week. This decline occurred as investors sought to secure profits prior to the release of crucial US inflation figures anticipated to influence the Federal Reserve's policy decisions. There is growing speculation in the markets regarding a prospective interest rate reduction by the Federal Reserve in September, driven by indications of a slowing labor market. A subsequent rate cut in December is also being factored into market expectations. Over the weekend, Federal Reserve Governor Michelle Bowman commented that the recent lackluster jobs report underscores concerns about the labor market's fragility, reinforcing her belief that three rate cuts may be warranted this year. Market participants are also monitoring a forthcoming decision regarding the extension of the US-China tariff truce deadline, set for August 12. Meanwhile, in geopolitical developments, US President Donald Trump is scheduled to meet Russian President Vladimir Putin on August 15 in Alaska, with the aim of negotiating an end to the Ukraine conflict.