Silver Prices Under Pressure: Yields and Economic Trends Idiomatically Influence Market Dynamics
Market Overview of Silver Prices
Silver (XAG/USD) climbed for the fifth consecutive day during Asian trading on Wednesday, reaching around $31.59 per troy ounce. The precious metal continues to attract investors as U.S. Treasury yields decline, following disappointing manufacturing data released on Tuesday.
Silver Boosted by Declining Yields and Manufacturing Weakness
The drop in yields has bolstered silver’s appeal as a safe-haven asset, particularly as geopolitical uncertainties in the Middle East add to market volatility. Investors remain cautious, turning to precious metals to hedge against potential risks.
- Current yields: 2-year at 3.95%, 10-year at 4.03%.
- NY Empire State Manufacturing Index fell to -11.9.
- This indicates a contraction in business activity.
Federal Reserve Rate Cut Expectations Capped
While silver’s momentum remains strong, expectations for aggressive rate cuts by the Federal Reserve (Fed) in 2024 have moderated. Recent robust U.S. employment and inflation data have tempered predictions for drastic monetary easing.
- 94.1% probability of a 25-basis-point cut in November.
- No indication of a larger 50-basis-point reduction.
- Atlanta Fed President signals one more rate cut this year.
Short-Term Forecast for Silver Prices
Silver (XAG/USD) continues its upward trend, currently trading at $31.59. A break above $31.84 may lead to further gains, while support at $30.98 could limit downside risks.
Silver Price Forecast: Technical Outlook
Silver is trading at $31.59, up 0.27%, continuing its upward momentum. On the 4-hour chart, silver is holding above the pivot point at $31.42, which acts as a key level of support.
Immediate resistance is found at $31.84, with further targets at $32.29 and $32.71 if bullish momentum continues. On the downside, support rests at $30.98, and a break below could trigger a pullback to $30.57 or lower.
The 50-period EMA at $31.27 and the 200-period EMA at $31.14 provide additional support for silver’s current trend. Overall, silver remains bullish above $31.42, but a break below this level could signal a sharp sell-off.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.