Silver (XAG) Forecast: Traders Await Fed Clarity—Rate Cuts or More Uncertainty?

2 Min Read
Daily Dow Jones Industrial Average Index

However, volatility of the stock market played a key role in the price promotion. The industrial average of Dow Jones fell by 3.1% for the worst week since March 2023, while the S&P 500 and Nasdaq both fell more than 2%, which marked their fourth consecutive weekly losses. A rebound in the late week in shares on Friday led to taking a profit in gold and silver and attracted both metals of their highlights.

Trade Uncertainty contributes to market voltage

In addition to inflation and nourished policy, trade risks remain a critical factor. President Trump confirmed plans for new rates for China, Canada and the EU, so that they were concerned about inflatory effects and possible retribution.

For silver, rates present a mixed prospect. Although trading undertability could increase the demand for safe haven, higher import costs and retaliation measures can have a negative influence on industrial sectors that depend on silver, such as electronics and solar energy. Traders keep a close eye on these developments for potential market -moving effects.

Market front views: FED meeting to guide the next move

The Rally of Silver Last week was largely powered by the expectations of the reductions of the FED rate and strong gold prices, but the volatility of shares and the shifting risk retention kept profit under control. Next week’s Federal Reserve Meeting is an important catalyst for silver, in which traders are looking for signals on the timing and the pace of future rate adjustments.

In addition to the FED, current trade risks and trends on stock market will also influence the next step from Silver, in particular because investors gauge wider economic uncertainty and its impact on the demand for safe port.

See also  Private Payrolls Miss Forecast at 146K in November, Pressuring Fed Policy Moves

More information in our economic calendar.

Source link

Share This Article
Leave a comment