Silver Prices Forecast: XAG/USD Edges Towards $24 Amid Lower Yields, Soft Dollar

Market Response and Inflation Outlook

Bond markets reacted tepidly to the Fed’s minutes, indicating no immediate rate cuts despite inflation rates remaining above the Fed’s target. However, easing inflationary pressures suggested by recent data have led investors to speculate about the end of rate hikes and the potential start of rate cuts, impacting the market’s outlook.

Silver’s Price Movement and Economic Data

Softer U.S. economic data, including the dip in existing home sales to a 13-year low, has supported silver prices by advancing the case for a Fed rate cut. While the dollar’s decrease has made silver more affordable globally, its current trajectory raises questions about its ability to surpass the $24.00 threshold.

Global Influence and Upcoming Economic Reports

Upcoming U.S. economic reports, including durable goods orders and jobless claims, are expected to provide further insights into the silver market’s trajectory, especially ahead of the Thanksgiving holiday. This blend of domestic and global factors paints a complex picture for silver’s short-term prospects.

Overall, the price action suggests cautious optimism for higher silver prices.

The price is also hovering above the minor support level of 23.55, which if held, reinforces the bullish sentiment. However, a failure to breach the trend line resistance might lead to a retest of this support.

Overall, the market sentiment for silver appears cautiously bullish, with key technical indicators favoring an upward trajectory, but with resistance levels posing potential challenges.