- Silver price finds support near $28.70 as US yields fall
- The Fed is expected to begin cutting interest rates starting in September.
- Investors are awaiting US second quarter GDP data and June core PCE inflation data.
Silver (XAG/USD) price finds temporary support near $28.70 in the American session on Tuesday after a four-day losing streak. The white metal finds temporary support as US bond yields decline amid firm speculation that the Federal Reserve (Fed) will start cutting interest rates from the September meeting.
US 10-year Treasury bond yields fall near 4.24%. Lower yields on interest-bearing assets reduce the opportunity cost of holding an investment in non-yielding assets, such as Silver.
Meanwhile, the US Dollar (USD) is rising as its safe-haven appeal improves due to uncertainty over the US presidential election in November. Democrats have nominated Vice President Kamala Harris as their challenger against Republicans led by Donald Trump.
Donald Trump’s victory is expected to result in higher inflation as he has promised to cut corporate taxes and interest rates, which could widen the fiscal budget deficit. He is also known for favoring restrictive trade policies.
On Tuesday, the price of silver in India plummeted as the government led by Prime Minister Narendra Modi proposed to reduce the import duty on the precious metal. The centre reduces the basic import duty from 10% to 6%.
Looking ahead, investors will focus on the US second-quarter gross domestic product (GDP) data and the core personal consumption expenditure (PCE) price index for June, due out on Thursday and Friday, respectively.
Technical analysis of Silver
Silver price is trading back and forth in a range between $28.50 and $32.50 for almost two months. The white metal falls below the 20-day exponential moving average (EMA), which is trading around $30.00, suggesting near-term uncertainty.
The 14-day RSI is fluctuating in the range of 40.00-60.00, indicating indecision among market participants.
Silver daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
