- Silver price remains sideways below $32.00 as investors look for new clues on possible Fed monetary policy action in November and December.
- The US dollar strengthens following better-than-expected US retail sales growth and lower jobless claims.
- Increasing odds of Trump winning the US presidential election enhance Silver’s appeal as a safe haven.
The price of Silver (XAG/USD) is trading in a tight range below the key resistance of $32.00 in the North American session on Thursday. The white metal is consolidating as investors look for new clues about the Federal Reserve’s (Fed) likely interest rate action for the remainder of the year.
According to the CME FedWatch tool, 30-day federal funds futures price data shows the central bank will cut interest rates by 25 basis points (bps) at both policy meetings in November and December.
Meanwhile, monthly United States (US) retail sales and lower initial jobless claims for the week ending October 11 have strengthened the US Dollar (USD). The US Dollar Index (DXY), which tracks the value of the Dollar against six major currencies, posts a new 10-month high at 103.85.
Retail sales data, a key measure of consumer spending, rose 0.4%, faster than estimates of 0.3% and the previous release of 0.1%. Meanwhile, people filing for unemployment benefits for the first time were lower, at 241K versus estimates of 260K.
US 10-year Treasury yields soar to 4.08%. Historically, higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, like Silver. However, the price of Silver remains supported as growing speculation over former US President Donald Trump’s victory in the upcoming presidential election has enhanced its appeal as a safe haven.
Silver technical analysis
The price of Silver is struggling to reclaim the decade high of $33.00. The upward-sloping 20-day and 50-day EMAs near $31.20 and $30.45, respectively, suggest a strong bullish trend.
The 14-day Relative Strength Index (RSI) is approaching 60.00. A decisive break above it would trigger bullish momentum.
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.
