Silver breaks below $30.50 on quest for Gaza ceasefire

The price of Silver halted its five-day winning streak, with XAGUSD trading around $30.40 per troy ounce on Thursday.

The decline in the safe-haven metal is attributed to increased optimism following signs of renewed efforts to secure a ceasefire deal between Israel and Hamas, as reported by Reuters.

Mediators Egypt and Qatar delivered a response from Hamas to a proposal that includes the release of hostages held in Gaza and a ceasefire in the Palestinian enclave.

Israel is currently studying the document, according to a statement released by Prime Minister Benjamin Netanyahu’s office on behalf of the Mossad agency.

The XAGUSD pair may limit its downside as the Dollar may struggle due to the softer US data raising speculations of the Federal Reserve reducing interest rates in 2024.

US ISM Services PMI fell sharply to 48.8 in June, marking the steepest decline since April 2020. This figure was well below market expectations of 52.5, following a reading of 53.8 in May.

Additionally, the ADP Employment report showed that US private businesses added 150,000 workers to their payrolls in June, the lowest increase in five months.

This figure fell short of the expected 160,000 and was below the downwardly revised 157,000 in May.

On Tuesday, Jerome Powell said that the Fed is getting back on the disinflationary path. However, the Fed Chair wants to see further evidence before cutting interest rates as the US economy and the labour market remain strong, per Reuters.

(Source: OANDA)