BoE decision to cut rates and increase incentives increased expectations for a long period of low interest rates worldwide, and this supports the price of silver. With slightly more stable dollar the price of the precious metal dropped to $ 20.00 and then continued upwards from the support.
The Bank of Japan also continues to weaker the monetary policy and even the Prime Minister mentioned that BOJ is not considering reduction, quite the opposite - the bank will most likely increase interest rates even more until they reach their goal of 2% inflation.
Bank of England reduced interest rates today to 0.25% and incentives from 435 billion pounds. After the news, bond prices went up. The return rate on bonds fell in Germany, America, and in the UK hit record lows. This situation provides better price for precious metals. The price of silver jumped and oil prices also closed 2% higher.
The upcoming news for the Non-Farm Payrolls tomorrow will lead to high volatility and trend of the dollar will be strictly monitored. Better data will support the dollar and may reduce the price of silver.
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