Silver (XAG) Forecast Amid Inflation and Fed Policies

Sunday, 22 September 2024, 10:49

Silver prices are on the rise as inflation concerns and Federal Reserve policies create a bullish environment. The recent interest rate cuts by the Fed and ongoing geopolitical tensions are fueling demand for silver as a safe-haven asset. Traders anticipate further gains as the market reacts to these developments.
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Silver (XAG) Forecast Amid Inflation and Fed Policies

Impact of Fed Policies on Silver Prices

The Federal Reserve's aggressive rate cuts have significantly influenced silver demand. Recently, the Fed cut interest rates by 50 basis points, a move promoting silver's appeal as a safe-haven asset. Analysts predict silver could see resistance levels at $31.76 and $32.52, with potential climbs towards $35.00.

Geopolitical Tensions and Market Reactions

Ongoing geopolitical issues, particularly in the Middle East, enhance silver's attractiveness to cautious investors. The combination of a weaker U.S. dollar and low Treasury yields presents a strong case for silver investments. With rising inflation, silver outperforms other commodities, maintaining a robust 32% increase this year.

  • Prolonged geopolitical risks boost silver demand
  • Weak U.S. dollar strengthens silver prospects
  • Traders eye upcoming Federal Reserve meetings for insights

Weekly Forecast: Silver's Path Ahead

This week, traders will scrutinize economic data for signals of further Federal Reserve rate cuts. Continued soft economic figures could propel silver prices upwards, eyeing targets of $33.00 or beyond. However, reduced industrial demand from Asia poses potential challenges.


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.


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