Silver (XAG) Daily Forecast: Triple Bottom Support Near $28.70; Buy Now?

Silver (XAG/USD) continued its downward trend, remaining under pressure at around $28.74 and reaching an intraday low of $28.68. This decline was influenced by a stronger US dollar and prevailing risk-on-market sentiment.

The Federal Reserve’s more hawkish stance at its June meeting, with policymakers signaling a preference for only one interest rate hike by year-end, bolstered the US dollar, contributing to silver’s losses.

Conversely, the risk of heightened geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict limited the decline in silver prices.

Traders are cautious before taking strong positions, particularly with key US macroeconomic data, including the US Personal Consumption Expenditures (PCE) Price Index, scheduled for release on Friday.

Federal Reserve Policy and Economic Indicators on Silver Prices

The Federal Reserve’s hawkish stance at its June meeting, indicating a likelihood of only one interest rate cut by year-end, has bolstered US Treasury bond yields and strengthened the US Dollar, contributing to silver’s losses.

Recent government data showed an 11.3% drop in New Home Sales for May, the lowest level since November, suggesting an economic slowdown despite easing inflation.

Despite these signals, the stronger US Dollar and the Fed’s stance have pressured silver prices, contrasting with market expectations of potential Fed rate cuts.

Looking ahead, traders remain cautious ahead of the US presidential debate and Friday’s release of the US Personal Consumption Expenditures (PCE) Price Index, a key inflation measure for the Fed.

Additionally, US macroeconomic data, including Q1 GDP, Durable Goods Orders, Weekly Jobless Claims, and Pending Home Sales, could influence market direction before the crucial Friday data release.

Short-term Forecast

Silver (XAG/USD) remains under pressure around $28.75, with an intraday low of $28.68. This decline is influenced by a stronger US dollar and a prevailing risk-on market sentiment.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is slightly down by 0.02%, trading at $28.74 in the latest session. The market’s movement is confined within narrow ranges, defined by a pivot point at $28.71. Resistance levels are lined up at $29.26, $29.70, and $30.02, which could cap upward movements.

Conversely, support levels are established at $28.32, $27.99, and $27.62. A breach below these supports could intensify selling pressure. Technical indicators show the 50-day and 200-day Exponential Moving Averages (EMAs) at $29.42 and $29.47 respectively, indicating potential resistance near current levels.

Overall, the market maintains a bullish stance above the pivot point, but a drop below $28.71 could trigger a significant bearish trend.