Market Overview

Silver (XAG/USD) has been under pressure for the third consecutive day, trading around $33.50 on Friday. The metal’s recent slide is largely attributed to a strengthening U.S. dollar and rising Treasury yields.

Positive economic data from the U.S., including a drop in unemployment claims and robust private sector growth as indicated by the S&P PMI, are adding to this downward momentum.

Fed Rate Cut Expectations Impacting Silver Prices

Thursday’s economic indicators painted a resilient picture of the U.S. economy. A significant drop in unemployment claims and a rise in the S&P PMI suggest that the private sector continues to grow.

This strength in the labor market makes it less likely that the Federal Reserve will take aggressive action on rate cuts. According to the CME FedWatch Tool, there is a 97% probability of a modest 25-basis-point rate cut in November, with no expectations for a larger 50-basis-point reduction.

“Given the positive economic data, the Fed is expected to take a more cautious approach,” noted a financial strategist. This outlook is contributing to the strengthening of the U.S. dollar, further pressuring silver prices.

Silver’s Safe-Haven Appeal Amid Geopolitical Uncertainty

Despite these headwinds, silver may find support due to ongoing geopolitical uncertainties and the looming U.S. presidential election. The election dynamics, coupled with tensions in the Middle East, are pushing some investors towards safe-haven assets like silver.

While economic data favors a stronger dollar, uncertainties surrounding the U.S. election and geopolitical risks—especially in the Middle East—could increase demand for silver. Traders are closely monitoring developments, with the metal’s safe-haven status possibly offsetting some of the selling pressure.

In conclusion, while silver faces short-term challenges from a strong U.S. dollar, its safe-haven appeal remains intact amid economic and geopolitical uncertainties, keeping the metal’s outlook mixed.

Short-Term Forecast

Silver (XAG/USD) remains under pressure at $33.50, facing resistance at $33.81. A strong U.S. dollar and rising yields drive the bearish trend, though safe-haven demand may lend support.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver – Chart
Silver – Chart

Silver (XAG/USD) is facing downward pressure, trading around $33.50, down 0.50%. Right now, silver is struggling to hold above its pivot point at $33.81, which is acting as a key resistance level. A break above this could trigger a push toward $34.27 and $34.55.

However, with a strong double-bottom pattern forming near the $33.35 support, silver might find temporary stability at this level.

Technical indicators such as the 50-day EMA at $33.83 and the 200-day EMA at $33.14 suggest caution. If the price breaks below $33.38, silver could test further support at $33.14 and $32.88, reinforcing the bearish trend.