**Key Takeaways:**
– Silver reached a two-month peak of $30.19 on August 26
– Fed Chair Jerome Powell’s comments suggest a possible rate cut at the next meeting
– U.S. economic data, particularly the PCE report and GDP estimate, will be closely watched
– Weakness in the U.S. dollar typically supports precious metals prices
– Silver prices may experience short-term volatility as traders await economic data
**Market Sentiment**
Silver recently hit a two-month high of $30.19, but concerns about the Fed’s approach and weak demand from China have left traders cautious. The market is looking for a catalyst to push silver above the $30.00 mark.
**Fed’s Stance and Rate Cut Expectations**
Fed Chair Jerome Powell’s remarks have increased expectations for a rate cut at the next meeting. Market participants are predicting a 66% chance of a 25 basis point cut and a 34% chance of a 50 basis point reduction in September.
**Economic Indicators**
Investors are eagerly awaiting the release of the U.S. personal consumption expenditures (PCE) data to gauge the health of the economy. This, along with the upcoming U.S. GDP estimate, will be crucial in shaping the Fed’s decision.
**Dollar Performance**
The U.S. dollar index is near a 13-month low, which usually supports precious metals prices. However, some analysts believe the dollar’s downward momentum may be slowing down, with support around the 100.18 level.
**Market Forecast**
Silver prices could see short-term volatility as traders process upcoming economic data. The performance of the precious metal will be influenced by Friday’s PCE report and any surprises in the GDP estimate. A weaker inflation reading might support silver prices, but concerns about Chinese demand could limit upside potential.
**Technical Analysis**