Gold prices are up on Thursday morning. The price of gold is trading at $2,412.22, up $29.39. The price of silver is trading at $27.16, up 55 cents. Silver market prices experienced a slight bump on Wednesday with strong bets on substantial U.S. interest rate cuts later this year, driven by recession fears in the U.S. and China. The Federal Reserve has hinted at a potential 50 basis point cut in September, which could impact silver’s appeal amid falling bond yields. Silver’s sensitivity to industrial demand makes economic slowdowns in major markets particularly concerning, with the 200-day moving average at $26.05 serving as a critical technical level that could either support prices or trigger a decline. Market sentiment is mixed, with Treasury yields rebounding and analysts debating whether this is a correction or the start of a prolonged downturn.

Federal Reserve officials have reinforced expectations of significant rate cuts, with markets now anticipating 110 basis points of easing this year. A 50 basis point cut in September is currently priced at a 70% probability, which could enhance the appeal of non-yielding assets like silver by putting downward pressure on the dollar and bond yields. However, concerns about industrial demand due to economic slowdowns in the U.S. and China loom large. The upcoming U.S. trade deficit figures and other economic data will be closely watched for further insights. The current spot gold/silver ratio is approximately 81.