Both silver and gold benefit from the risky sentiment in the market. Gold is trading near its all-time high at $2,685.64, with the current session high at $2,682.88. The precious metals market is supported by weakening stocks and falling bond yields.
Economic data: key to the Fed’s next move
Traders are closely watching upcoming U.S. economic data releases, including retail sales, industrial production and weekly jobless claims. These reports will provide crucial insights into the Federal Reserve’s possible timetable for rate cuts. Mary Daly, president of the Federal Reserve Bank of San Francisco, has indicated that the central bank remains on track for rate cuts this year, assuming economic data is in line with expectations.
Bullish Forecasts: Industry Experts Predict Record Highs
Delegates at the annual meeting of the London Bullion Market Association have predicted a substantial rise in bullion prices over the next twelve months. They predict gold will rise to $2,941 and silver will rise to $45 per ounce, representing significant upside potential from current levels.
Global markets: yields fall, currency shifts
Ten-year US Treasury yields have fallen slightly, currently at 4.012%, making non-yielding assets like silver more attractive. In currency markets, the British pound has fallen to its lowest level in two months following softer-than-expected inflation data, while the euro remains under pressure ahead of the European Central Bank meeting.
Silver Outlook: Bullish Signals Ahead
The confluence of factors supporting precious metals prices points to a bullish outlook for silver in the near term. With global economic uncertainties, geopolitical tensions and the potential for rate cuts, silver appears poised to be tested and potentially break above recent highs. Traders should keep a close eye on key resistance levels and upcoming economic data releases to confirm this bullish trend.