Silver Prices Forecast: XAG/USD Edges Towards $24 Amid Lower Yields, Soft Dollar

NEW YORK (November 22) Silver (XAG/USD) prices stayed robust, approaching the crucial $24.00 level, driven by a weaker dollar and declining U.S. bond yields, signaling a potential end to the Federal Reserve’s rate hikes.

Federal Reserve’s Cautious Stance

The Federal Reserve’s latest meeting minutes reveal a cautious approach, with all members agreeing to maintain the current rate setting. This stance, coupled with mixed signals from the U.S. Treasury yields, has reinforced the belief that the Fed may halt its rate-hiking trend, bolstering silver’s position.

Market Response and Inflation Outlook

Bond markets reacted tepidly to the Fed’s minutes, indicating no immediate rate cuts despite inflation rates remaining above the Fed’s target. However, easing inflationary pressures suggested by recent data have led investors to speculate about the end of rate hikes and the potential start of rate cuts, impacting the market’s outlook.

Silver’s Price Movement and Economic Data

Softer U.S. economic data, including the dip in existing home sales to a 13-year low, has supported silver prices by advancing the case for a Fed rate cut. While the dollar’s decrease has made silver more affordable globally, its current trajectory raises questions about its ability to surpass the $24.00 threshold.

Global Influence and Upcoming Economic Reports

Upcoming U.S. economic reports, including durable goods orders and jobless claims, are expected to provide further insights into the silver market’s trajectory, especially ahead of the Thanksgiving holiday. This blend of domestic and global factors paints a complex picture for silver’s short-term prospects.

FXEmpire