Silver (XAG) Daily Forecast: Price Nears $31; Will the Uptrend Continue?

However, weaker economic growth and subdued retail sales in China may provide some relief for silver’s decline. Investors often turn to precious metals during economic uncertainty, potentially limiting further losses.

Looking ahead, traders are closely watching the upcoming release of the Empire State Manufacturing Index from the US, which could offer short-term trading opportunities. Furthermore, Federal Reserve Chair Jerome Powell’s scheduled speech later in the North American session is expected to provide additional insights into the Fed’s monetary policy stance, influencing silver price movements.

US Dollar Strength Pressures Silver Prices Amid Fed Rate Cut Expectations

Despite growing expectations of Federal Reserve interest rate cuts starting in September, the US dollar has shown strength amid reports of an attempted assassination of former President Donald Trump. This has put downward pressure on silver prices.

Market sentiment still strongly favors a Fed rate cut in September, supported by a recent report indicating subdued US consumer inflation levels. Additionally, the US Bureau of Labor Statistics reported a 2.6% rise in the Producer Price Index (PPI) for final demand in June, exceeding the expected 2.3%.

Therefore, the strong US dollar has pressured silver prices, despite the anticipated Fed rate cuts, driven by subdued consumer inflation and a robust 2.6% rise in the PPI for final demand in June.

US Political Tensions and China’s Economic Challenges Affect Silver Prices

Political tension in the US after the reported attempt on former President Donald Trump’s life, coupled with economic problems in China, is sending mixed signals for silver prices. China’s economy grew by 4.7% in Q2 2024, down from 5.3% in the previous quarter. Retail sales in June increased by 2.0% year-over-year, below expectations.

Additionally, fixed asset investment grew by 3.9% so far this year, falling short of analysts’ predictions.

Therefore, political tension in the US and economic challenges in China have created uncertainty for silver prices. China’s slower economic growth, weaker retail sales, and investment suggest potentially reduced industrial demand for silver, impacting its price outlook.

Short-Term Forecast

Due to a stronger US dollar, silver prices may face continued pressure around $30.8455. A break below $30.60 could trigger further declines, while weak Chinese economic growth might offer some relief.

Silver (XAG/USD) Price Forecast: Technical Outlook