Silver price (XAG/USD) is currently consolidating near $31.00 in Monday’s North American session. Investors are eagerly awaiting the speech by Federal Reserve (Fed) Chair Jerome Powell at the Economic Club of Washington later in the day, as it will provide insight into when the central bank may start reducing interest rates. The speculation for Fed rate cuts in September has already had an impact on the US Dollar (USD) and bond yields, with the US Dollar Index (DXY) trading below the immediate support level of 104.00.
The ongoing uncertainty surrounding China’s third plenum meeting next week is also contributing to the uncertainty in Silver price outlook. The meeting is expected to introduce measures to boost China’s real estate and manufacturing sectors. China’s weaker-than-expected Q2 Gross Domestic Product (GDP) growth has further deepened concerns over Silver demand, as it is a metal widely used in industry, particularly in manufacturing and automobile sectors.
Silver price technical analysis shows that it holds the breakout of the Falling Channel chart formation on a daily timeframe, with the 20-period Exponential Moving Average (EMA) providing support near $30.30. The 14-period Relative Strength Index (RSI) is struggling to break above 60.00, but a decisive move above this level could signal a momentum shift to the upside. The ongoing uncertainty in global markets, coupled with geopolitical tensions and economic indicators, are likely to continue influencing Silver price movement in the near term.
Silver is a precious metal that is highly traded among investors, offering a store of value and a potential hedge against inflation. While Gold is more popular, many investors turn to Silver to diversify their investment portfolio. The metal can be bought physically in the form of coins or bars, or traded through Exchange Traded Funds that track its price on international markets. Silver prices are influenced by a variety of factors, including geopolitical instability, economic indicators, investment demand, and the behavior of the US Dollar.
Silver is widely used in industrial sectors such as electronics and solar energy due to its high electric conductivity. Changes in demand from these sectors can impact Silver prices, as can developments in key economies such as the US, China, and India. Silver prices tend to follow Gold’s movements, as both metals are considered safe-haven assets. The Gold/Silver ratio, which compares the value of one ounce of Gold to the value of Silver, can help investors gauge the relative valuation between the two metals and make informed investment decisions based on market dynamics.
Overall, Silver price remains in a tight range near $31 as investors monitor key events such as Fed Chair Powell’s speech and China’s third plenum meeting. While a firm Fed rate cut outlook and uncertainties in the global market continue to impact Silver price movement, technical analysis suggests potential upside momentum if key resistance levels are breached. With Silver’s intrinsic value and industrial demand playing significant roles in its price fluctuations, investors will be closely watching for further developments that could shape the metal’s future trajectory.
