Silver (XAG) Bullish Forecast: Reaching New Heights
Silver's Recent Rally
Silver prices experienced a remarkable surge, reaching a high of $32.72 on Thursday, eclipsing the last yearly peak of $32.52. This strong momentum places silver's multi-year high of $34.35 within striking distance for traders.
Interest Rate Expectations Fuel Silver Growth
The recent uptrend in the silver market is mainly driven by rising expectations surrounding future U.S. interest rate cuts. As Federal Reserve Chair Jerome Powell is set to provide comments that could shed light on future monetary policy, traders are keenly attentive.
- Current XAG/USD trading at $32.36, reflecting a gain of 1.74%.
- 62% chance of a further 50 bps interest rate cut in November.
- Lower rates enhance the attraction of non-yielding assets like silver.
Economic Indicators at Play
Traders are awaiting critical U.S. economic data, such as weekly jobless claims and the core personal consumption expenditure (PCE) index. The insights from these releases are pivotal for gauging inflation management strategies of the Federal Reserve.
2024 Performance and Future Predictions
Silver has shown remarkable growth this year, up over 30%, influenced by multiple factors including safe-haven demand and geopolitical uncertainties. Looking forward, there is potential for prices to exceed $35 per ounce if the current trends maintain momentum.
Short-Term Market Outlook
In the short-term, silver appears positioned to extend its upward trajectory. However, risk of profit-taking looms as year-end approaches. We estimate an average price of $31.76 for Q4 2024 amid potential market corrections.
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.