Silver (XAG) Forecast: Technical Analysis and Dovish Fed Insights

Friday, 27 September 2024, 06:21

Silver prices bounce higher on a dovish Fed outlook as inflation cools. This forecast analyzes the potential for further market movements and risks to consider.
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Silver (XAG) Forecast: Technical Analysis and Dovish Fed Insights

Silver Market Overview

Silver prices are climbing, bolstered by the recent U.S. Personal Consumption Expenditures (PCE) price index data. Although trading below Thursday's high of $32.72, the bullish sentiment prevails, despite potential corrections ahead due to overbought indicators.

Key U.S. Inflation Data

  • The U.S. PCE index increased by 0.1% in August, presenting a 12-month rate of 2.2%.
  • This marks a decrease from July's 2.5%, the lowest since February 2021.
  • Core PCE rose by 0.1%, indicating a yearly rate of 2.7%.

Fed's Shift in Strategy

The Federal Reserve appears to be transitioning from inflation control to economic support. Personal income and spending for August showed weaker growth, prompting discussions around potential interest rate cuts to support the economy.

Silver's Short-Term Outlook

With the trend in inflation easing, silver may continue its upward trajectory. However, the current overbought conditions suggest traders should be alert for potential volatility as the Fed's monetary policy evolves.


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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