Silver shows resilience amid mixed signals
Silver prices (XAG/USD) are holding near $30.03, with an intraday high of $30.1565, reflecting cautious optimism among traders. Like gold, silver faces headwinds from the strong dollar and higher interest rates, but its dual role as an industrial and safe haven underpins current price levels.
The upcoming FOMC minutes are expected to play a crucial role in determining the near-term direction for both metals. Inflation concerns and geopolitical uncertainties strengthen silver’s position as a hedge against market instability.
Economic data determines market sentiment
Recent US economic figures contribute to the market’s caution. The ISM Non-Manufacturing PMI rose to 54.1 in December, while the Job Openings and Labor Turnover Survey (JOLTS) showed an unexpected increase in job openings to 8.098 million in November. These reports reinforce the narrative of a resilient economy and reduce the likelihood of aggressive rate cuts by the Fed.
As rising bond yields continue to weigh on gold and silver, lingering concerns about inflation and geopolitical risks may provide support, keeping investors engaged in these important assets.
Short-term forecasting
Gold prices are hovering around $2,649.07, with a break above $2,650 indicating bullish momentum. Silver is struggling below $30.31 and is facing resistance at $30.73. The FOMC minutes remain critical.