- The price of Silver rises to around $32.00 as its safe haven demand has improved amid a negative market environment.
- The white metal has also gained at the expense of US yields.
- Traders expect the Fed to cut interest rates by 50 bps in the remainder of the year.
The price of Silver (XAG/USD) jumps close to the crucial resistance of $32.00 in the North American session on Wednesday. The white metal gains as investors’ risk appetite has declined due to growing speculation that former US President Donald Trump will win the upcoming presidential election. The Trump 2.0 administration is expected to result in increased tariffs on imports of several goods.
S&P 500 futures trade cautiously in the North American session. The Dollar Index (DXY), which tracks the value of the Dollar against six major currencies, is holding on to gains around 103.40.
Meanwhile, a slight drop in US Treasury yields has also strengthened the price of Silver. US 10-year Treasury yields fall near weekly low around 4%. Lower yields on interest-bearing assets reduce the opportunity cost of holding an investment in non-yielding assets, like Silver.
Going forward, the price of Silver will be guided by market expectations regarding the Federal Reserve’s (Fed) interest rate outlook. According to the CME FedWatch tool, traders see the Fed cutting interest rates by 50 basis points (bps) to 4.25%-4.50%, suggesting the central bank will cut interest rates by 25 bps at the policy meetings. November and December.
On the economic data front, investors will pay close attention to monthly United States (US) retail sales data for September, a key measure of consumer spending driving price pressures, due out on Thursday. . Economists expect retail sales to have grown 0.3%.
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 $30.40, 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.
