Silver faces headwinds from Hawkish Fed expectations
Silver (XAG/USD) is trading around $29.84 after hitting an intraday low of $29.74. Like gold, silver is under pressure from softer US inflation data and strong US jobs data. Expectations of rising government bond yields and Fed tightening policy continue to limit silver’s appeal as a safe haven.
Silver’s performance also reflects broader market trends favoring riskier assets, while fears of aggressive rate hikes diminish. However, geopolitical developments are keeping investors cautious and providing some support for precious metals.
Emerging CPI data and geopolitical uncertainty remain key drivers
Market participants are closely watching the upcoming U.S. Consumer Price Index (CPI) report for clarity on the Federal Reserve’s policy stance. Any surprises in inflation rates could have a significant impact on gold and silver prices.
Geopolitical risks also remain an important factor. Rising tensions in Ukraine and the Middle East have created uncertainty, although potential ceasefire negotiations in Qatar could change the risk landscape.
Short-term forecasting
Gold is consolidating around $2,675 and expects a breakout above $2,658.88 for bullish momentum. Silver is facing resistance at $30, while support remains at $29.40.