Silver (XAG) Bullish Forecast: Reaching New Heights

Thursday, 26 September 2024, 05:25

Silver prices are on an impressive bullish run, having recently surged past previous highs to $32.72. With traders eyeing a multi-year peak at $34.35, the market is charged with anticipation. Speculation over U.S. interest rate cuts amplifies this trend, making silver an appealing asset. Investors are keenly observing economic indicators and Federal Reserve commentary that may influence this trajectory.
Fxempire
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.


Related posts


Newsletter

Subscribe to our newsletter for the most current and reliable cryptocurrency updates. Stay informed and enhance your crypto knowledge effortlessly.

Subscribe