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Silver (XAG) Daily Forecast: Prices Below $30.50, Is a Downtrend Forming?
By:
Key Points:
- Silver nears resistance at $30.48, supported by Federal Reserve rate cut anticipation.
- Strong US Dollar tempers silver's upward momentum amid mixed economic signals.
- Failure to hold $30.06 support may lead to declines towards $29.70 and $29.34.
In this article:
Fed Rate Cut Hopes Fuel Silver Price Amidst Mixed Economic Signals
Silver prices are being buoyed by increasing expectations of Federal Reserve interest rate cuts, fueled by optimistic comments from Fed officials on easing inflation.
However, a stronger US Dollar, supported by improved Treasury yields, is tempering Silver’s upward momentum. Mixed signals on inflation and stable retail sales further contribute to Silver’s price stability.
While financial markets anticipate a high probability (93.5%) of a September rate cut, the Fed’s decision hinges on further economic data, particularly on inflation.
Despite the current optimism, the mixed signals on inflation and stable retail sales highlight the uncertainties surrounding the timing and extent of future rate cuts, ultimately influencing Silver’s price trajectory.
Short-Term Forecast
Silver (XAG/USD) climbed to $30.39 amid anticipation of a September Federal Reserve rate cut. Fed Governor Waller’s comments and former President Trump’s advocacy for lower rates support silver’s rally.
Silver (XAG/USD) Price Forecast: Technical Outlook
Silver prices edged higher, reaching $30.41, but remain below the pivotal $30.48 level. The metal is currently navigating a narrow range between the 50-day and 200-day exponential moving averages, signalling a period of consolidation.
A decisive break above $30.48 could ignite a rally towards the next resistance levels at $30.79, $31.12, and potentially $31.43.
Conversely, failure to hold above the immediate support at $30.06 could expose silver to further declines towards $29.70 and $29.34.
About the Author
Arslan Aliauthor
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.
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