Silver Faces Headwinds from Hawkish Fed Expectations
Silver (XAG/USD) is trading near $29.84 after hitting an intraday low of $29.74. Like gold, silver is under pressure from softer U.S. inflation data and strong U.S. jobs numbers. Expectations of rising Treasury yields and the Fed’s tightening policy continue to dampen the appeal of silver as a safe-haven asset.
Silver’s performance also reflects broader market trends favoring riskier assets amid easing fears of aggressive rate hikes. However, geopolitical developments keep investors cautious, offering a degree of support for precious metals.
Upcoming CPI Data and Geopolitical Uncertainty Remain Key Drivers
Market participants are closely watching the upcoming U.S. Consumer Price Index (CPI) report for clarity on the Federal Reserve’s policy stance. Any surprises in inflation figures could significantly impact gold and silver prices.
Geopolitical risks also remain a key factor. Rising tensions in Ukraine and the Middle East have created uncertainty, though potential ceasefire talks in Qatar could shift the risk landscape.
Short-Term Forecast
Gold consolidates near $2,675, eyeing a breakout above $2,658.88 for bullish momentum. Silver faces resistance at $30, with support holding at $29.40.
Gold Prices Forecast: Technical Analysis
Source: Gold (XAU) Silver (XAG) Daily Forecast: Will CPI Data Spark a Bullish Breakout?
