Silver (XAG) Daily Forecast: Price at $30.77; Rate Cut Speculation at 73%

By:

Arslan Ali

Published: Jul 9, 2024, 06:30 GMT+00:00

Key Points:

Silver (XAG) currently priced at $30.77, influenced by mixed US economic data.
Federal Reserve rate cut speculation stands at 73%, impacting Silver price forecast.
Immediate resistance at $31.087; support at $30.581, with an upward trendline providing support.

In this article:

Silver

-0.99%

Silver (XAG/USD) is currently priced at $30.773 on the 2-hour chart. The Silver price forecast has been influenced by mixed US economic data. Recent figures show that while June’s employment numbers exceeded estimates, downward revisions for April and May suggest a cooling job market.

This has led to speculation about potential Federal Reserve rate cuts, impacting the XAG/USD price. On Monday, Silver saw a slight decline as US equities gained and US Treasury bond yields edged lower.

Federal Reserve’s Potential Rate Cuts and Silver Price

The possibility of the Federal Reserve cutting interest rates has been a key factor in the Silver price forecast. The US 10-year Treasury bond yield fell by nearly two basis points to 4.27%, reflecting market expectations of a Fed rate cut.

According to the CME FedWatch Tool, there is a 73% probability of a rate cut in September, up from 71% last Friday. This anticipation has kept the XAG/USD price in focus for investors.

Global Economic Events and XAG/USD Price Movement

Global economic events continue to play a significant role in the Silver price forecast. The People’s Bank of China’s decision not to buy Silver in June, after purchasing in May, affected market sentiment.

Additionally, the upcoming US economic docket, including Fed Chairman Jerome Powell’s Congressional Testimony and inflation figures, will be crucial in determining future XAG/USD price movements.

Analysts expect US CPI to decrease from 3.3% to 3.1% year-over-year in June, with core inflation steady at 3.4%.

The Silver market remains sensitive to these economic indicators and events, with the XAG/USD price forecast reflecting the broader economic environment. Investors should keep an eye on these developments to gauge the potential direction of Silver prices.

Short-term Forecast

Silver (XAG/USD) is currently priced at $30.773. Immediate resistance is at $31.087, with support at $30.581. Speculation about potential Federal Reserve rate cuts is influencing price movements.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver – Chart

Silver (XAG/USD) is currently priced at $30.773 on the 2-hour chart. The pivot point is at $30.581 (Green line). Immediate resistance is at $31.087, followed by $31.464 and $31.704.

On the downside, immediate support lies at $30.581, with further support at $30.264 and $30.013. The 50-day EMA is positioned at $30.513, while the 200-day EMA stands at $29.910.

The outlook suggests buying above $30.58, as the upward trendline is providing support at this level. Any movement below this level could indicate a shift in the trend.

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

Did you find this article useful?