Silver (XAG) Price Forecast: US Inflation Data's Impact on Breakout Potential
Silver (XAG) Forecast: Will US Inflation Data Propel Breakout?
Silver (XAG) prices are edging higher as traders eagerly await crucial U.S. inflation data, which is expected to be a pivotal factor in determining whether silver will break above the 50-day moving average at $29.03.
Current Trading Situation
- As of 11:53 GMT, XAG/USD is trading at $28.84, up $0.44 or +1.56%.
- Traders exhibit signs of fatigue in recent rangebound movements, suggesting a possible breakout.
The CPI Report: Key Market Driver
The U.S. Consumer Price Index (CPI) report will be released at 12:30 GMT, with economists expecting a month-on-month rise of 0.2% for August. A year-on-year increase of 2.6% is also anticipated, down from 2.9% last month.
Market Sentiment on Rate Cuts
Markets are buzzing about potential Federal Reserve interest rate cuts in 2024, with a majority of economists predicting 25 basis point cuts in the next three meetings. However, uncertainty remains regarding the speed and magnitude of these cuts.
Future Price Targets for Silver
- Industry experts suggest silver prices could reach highs above $32.48 in 2024.
- Price movement will depend significantly on dollar strength, rate cut expectations, and gold price trends.
Upcoming Economic Data Points
Traders should also watch for the U.S. Producer Price Index (PPI) and initial jobless claims data, as these figures could further influence silver prices.
What’s Next for Silver?
With a bullish outlook for the short-term, traders should prepare for a potential breakout above the 50-day moving average while remaining cautious of volatility surrounding economic data releases.
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.