Silver (XAG) Daily Forecast: Prices Rise to $30.63; Will Uptrend Continue?

Consequently, the US dollar has declined for the fourth consecutive day, falling to a three-week low, which has bolstered silver prices. However, a risk-on environment may curb substantial gains in safe-haven assets like silver.

Silver Prices Rise Amid Weakening US Dollar and Anticipated Fed Rate Cuts

The broad-based US dollar continued its decline as markets increasingly anticipate interest rate cuts by the Federal Reserve in September, with potential cuts again in December.

This expectation follows recent weaker US economic data. Consequently, the US Dollar (USD) has fallen for the fourth consecutive day, reaching its lowest level in over three weeks, significantly boosting silver prices.

The eagerly anticipated Nonfarm Payrolls report is scheduled for release later today during the North American session. Analysts predict the report will show the US economy added 190,000 jobs in June, down from the previous month’s 272,000. The unemployment rate is expected to remain steady at 4%, indicating stability in the labor market.

However, Average Hourly Earnings growth may slow slightly, with a projected yearly increase of 3.9% compared to May’s 4.1%. These figures are crucial for insights into the health of the US economy and could impact Federal Reserve policy decisions.

The weakening US dollar and anticipation of potential Fed rate cuts could further bolster silver prices. Investors may turn to alternative assets amid economic uncertainty and inflation concerns, enhancing silver’s appeal.

Short-term Forecast

Silver (XAG/USD) remains bullish, trading at $30.63, driven by a weaker US dollar and anticipated Fed rate cuts. Immediate resistance is at $30.85, with support at $30.37.