Silver Surges on Fed Rate Cut Hopes

Silver prices rose to nearly $28.00 per troy ounce during the Asian session on Monday, driven by weaker US jobs data that raises the chance of a 25 basis-point rate cut by the Federal Reserve (Fed) this September. Lower interest rates generally benefit silver by lowering the opportunity cost of holding non-yielding assets. However, silver's potential gains may be limited by shifting precious metal flows, as the recent de-escalation of geopolitical tensions in the Middle East could dampen demand for precious metals. Reports indicate that Israeli forces have withdrawn from Jenin, according to Reuters and the Palestine news agency WAFA.

From a technical perspective, the first resistance level to watch is at 28.00. If silver breaks above this level, the next resistance levels to watch will be 28.30 and 28.80, respectively. On the downside, the initial support level is at 27.70, with subsequent support levels at 27.20 and 26.70.