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Silver (XAG) Daily Forecast: Prices Plunge to $29.50 – Is It Time to Sell?
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Key Points:
- Silver prices decline to $29.52, pressured by a strong US dollar and profit-taking.
- Rising unemployment claims and a strong US dollar weigh on silver, despite Fed cut expectations.
- Geopolitical tensions, including Middle East conflicts, may support silver prices as a safe haven.
In this article:
Silver Prices Fall Amid US Dollar Strength and Rising Unemployment Claims
Despite expectations for a Federal Reserve rate cut in September, the US dollar has gained strength, driving silver prices lower. Recent data from the Bureau of Labor Statistics shows a rise in unemployment claims to 243,000, marking the highest 4-week average in over two and a half years, signaling a weakening job market.
This, combined with decreasing inflation, suggests that the Fed might soon begin its rate cuts. Positive US manufacturing data and market predictions point to a 100% probability of a rate cut in September, with two more cuts expected by the end of the year.
The US dollar’s strength and increased unemployment claims are pressuring silver prices lower. However, expectations for Fed rate cuts and strong manufacturing data could offer some support.
Short-Term Forecast
Silver (XAG/USD) is likely to remain bearish around $29.52, pressured by a strong US dollar. However, geopolitical tensions might offer some support, potentially stabilizing prices.
Silver (XAG/USD) Price Forecast: Technical Outlook
Silver (XAG/USD) is trading at $29.52, reflecting a 0.79% decline. On the chart, the pivot point is at $29.82. Immediate resistance levels are at $30.13, $30.56, and $31.01. Immediate support is at $29.26, with further support at $28.96 and $28.58.
The 50-day Exponential Moving Average (EMA) is at $30.44, and the 200-day EMA is at $30.41, indicating a bearish trend as prices remain below these averages.
The outlook is bearish below $29.80, but a break above this level could signal a bullish trend. Monitoring these key levels is crucial for trading decisions.
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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