Silver Prices Forecast: XAG/USD Higher as Powell’s Speech Looms, Middle East Unrest Persists

NEW YORK (October 18) Silver prices surged to a two-week peak, driven largely by rising geopolitical tensions in the Middle East. This run contradicts the robust U.S. economic data that typically propels investors toward higher-yielding options. As it stands, silver, alongside gold, remains the preferred safe-haven asset as conflicts continue to escalate.

Upcoming Powell Speech: A Critical Event

Fed Chair Jerome Powell’s imminent speech is generating considerable attention among silver traders. Recent U.S. retail sales figures came in surprisingly strong, lifting Treasury yields and generally exerting pressure on non-yielding assets like silver. However, the persisting geopolitical concerns seem to be counterbalancing the impact of higher interest rates, as traders stay committed to safe havens.

China’s Robust Economy Adds Fuel to the Fire

Another contributing factor to silver’s rise is China’s stronger-than-expected economic data for the third quarter. As one of the largest consumers of silver, positive economic performance from China is being interpreted as a signal for sustained demand, providing additional support for the metal’s current upward momentum.

Overall Bullish Sentiment, But Powell’s Speech a Wildcard

In sum, market sentiment for silver is veering on the bullish side. The momentum is being fueled by ongoing geopolitical uncertainties and promising economic figures out of China. Nonetheless, the future landscape may shift dramatically depending on what Fed Chair Jerome Powell has to say about U.S. monetary policy. His comments are widely seen as the next potential turning point for silver markets.

FXEmpire