Key Takeaways:
- Silver prices surpassed $30 per ounce for the first time in over two weeks, with little downward pressure on the commodity.
- The rush to safe haven assets, including silver, is fueled by anticipated interest rate cuts and concerns about the stability of major global economies.
- Gold spiked to new all-time highs of $2,573 per ounce as the market awaits the Fed’s interest rate decision.
- The probability of a 50 basis points rate cut stands at 41%, up from 28% the previous day, following higher-than-expected Initial Jobless Claims figures.
Silver Price Rises Amidst Safe Haven Appeal
Silver prices have surged past the $30 per ounce mark for the first time in more than two weeks, extending their winning streak to the fifth consecutive day. This uptrend highlights the appeal of safe haven metals like silver, particularly as the market awaits the Federal Reserve’s interest rate decision. At the time of writing, XAUUSD was up 0.7 percent, retracing to $30 per ounce for the first time since August 28. Gold, silver’s counterpart, reached new all-time highs of $2,573 per ounce.
Market Factors Driving Silver Price
The rush to safe haven assets is being driven by a combination of anticipated interest rate cuts and concerns over the stability of prominent global economies. Higher-than-expected Initial Jobless Claims figures have increased the likelihood of a 50 basis points rate cut to 41%, up from 28% the day before. This has put pressure on the dollar and raised expectations for a more substantial rate cut next week. Yields on the 10-year US treasury bonds have declined to 3.63%, further supporting non-yielding silver prices.
Challenges and Opportunities for Silver Prices
While the outlook for silver prices remains positive, there are challenges on the horizon. Concerns about China’s economy, the second-largest globally, could limit the upside potential for silver. Mixed economic data from China suggests reduced demand from silver’s industrial users. However, stable growth in the renewable energy sector might offset some of these concerns. China’s upcoming economic data release could significantly impact silver price trajectory.
Technical Analysis and Price Forecast
Silver price charts indicate a bullish trend, with buyers controlling the market above the pivot point at $29.95. Resistance is expected at $30.19, with a potential break above leading to a test of $30.50. Conversely, a drop below $29.95 could favor sellers, with initial support at $29.70. A further downward move could break this support, invalidating the bullish narrative and potentially testing the second support level at $29.50.