Silver Price Forecast: XAG/USD Stays Firm Above $29 Amid Firm Fed Rate-Cut Hopes

Silver, Bars, 5000 Grams, Real Value

Image Source: Pixabay

Silver price (XAG/USD) gains ground above the crucial support of $29.00 in Wednesday’s New York session. The white metal finds buyers amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.

The expectations for the Fed to begin unwinding its restrictive monetary policy framework rise due to a higher-than-expected United States (US) decline in the Consumer Price Index (CPI) and slower than forecasted growth in Retail Sales data for May. May’s data showed that progress in the disinflation process has resumed, and consumers cut heavily on discretionary spending as high inflation and interest rates by the Federal Reserve (Fed) have reduced the purchasing power of households.

Meanwhile, the market sentiment remains quiet as US markets are closed on Wednesday on account of Juneteenth. The US Dollar Index (DXY) edges down to near 105.20.

This week, investors will focus on the preliminary US S&P Global PMIs data for June, which will be published on Friday. The agency is expected to show a decline in the Composite PMI due to weakness in manufacturing as well as the service sector.

Silver technical analysis

Silver price trades in a Falling Channel chart pattern in which each pullback is considered a selling opportunity by market participants. The asset trades close to the 200-period Exponential Moving Average (EMA), which trades around $29.40, suggesting a consolidating ahead.

The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, indicating indecisiveness among market participants.

Silver four-hour chart

(Click on image to enlarge)


Today last price 29.53
Today Daily Change -0.01
Today Daily Change % -0.03
Today daily open 29.54
Daily SMA20 30.29
Daily SMA50 29.03
Daily SMA100 26.54
Daily SMA200 24.84
Previous Daily High 29.68
Previous Daily Low 28.93
Previous Weekly High 30.26
Previous Weekly Low 28.66
Previous Monthly High 32.51
Previous Monthly Low 26.02
Daily Fibonacci 38.2% 29.39
Daily Fibonacci 61.8% 29.22
Daily Pivot Point S1 29.09
Daily Pivot Point S2 28.63
Daily Pivot Point S3 28.33
Daily Pivot Point R1 29.84
Daily Pivot Point R2 30.14
Daily Pivot Point R3 30.59

More By This Author:

WTI Posts Fresh Six-Week High Near $81.00 On Geopolitical Uncertainty And Firm Fed Rate-Cut Bets
Silver Price Forecast: XAG/USD Recovers Strongly From $29.00 On Sluggish US Retail Sales
GBP/JPY Recovery Stalls Near 200.00 As Focus Shifts To UK Inflation

Disclaimer: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...

How did you like this article? Let us know so we can better customize your reading experience.