Silver prices recovered slightly near $29.25 on Thursday after a sharp decline, but the outlook remains bearish due to the Federal Reserve's hawkish stance and expectations for fewer interest rate cuts in 2025. The Fed's guidance has led to a stronger US dollar and higher Treasury yields, increasing the opportunity cost of holding non-yielding assets like silver.
Silver price finds an interim cushion near $29.25 but its outlook remains vulnerable. Higher bond yields due to the Fed’s hawkish guidance have weighed on the Silver price. The Fed sees only two interest rate cuts in 2025. Silver price ( XAG/USD ) finds temporary support near $29.25 on Thursday after plunging almost 4% on Wednesday.
The outlook of the white metal remains bearish as the Federal Reserve (Fed) has signaled fewer interest rate cuts for 2025 after cutting them by 25-basis points (bps) to 4.25%-4.50%. The Fed's hawkish remarks for the next year have resulted in a rally in the US Dollar (USD) and Treasury yields. The US Dollar Index (DXY), which tracks the greenback’s value against six major currencies, dropped to near 107.90 in Thursday’s European session after refreshing a two-year high of around 108.30. 10-year US Treasury yields advance above 4.50%. Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Silver. The Fed’s dot plot showed that policymakers see the Federal Funds rate heading to 3.9% by 2025, suggesting two interest rate cuts next year. In the September meeting, officials had forecasted four interest rate cuts collectively. The Fed guided a slower policy-easing cycle as the United States (US) inflationary pressures appear to have stalled in the past few months. Meanwhile, Fed Chair Jerome Powell acknowledged that strong growth in the second half of the year is a major reason to move cautiously on interest rates. Silver technical analysis Silver price slides to near the 200-day Exponential Moving Average (EMA), which trades around $29.40. The white metal weakened after breaking below the November low of $29.65. The asset has also tested the upward-sloping trendline around $29.50, which is plotted from the February 29 low of $22.30 The 14-day Relative Strength Index (RSI) dropped inside the bearish 20.00-40.00 range, indicating a downward trend ahead
Silver XAG/USD Federal Reserve Interest Rates US Dollar
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Michael Jordan's Highland Park mansion sells for $9.5 million after 12 years on the marketJordan originally put the mansion up for sale with a $29 million asking price in 2012.
Read more »
Silver Price Forecast: XAG/USD dips as US Dollar strength pushes price below $31.00Silver's price retreats over 1.14% on Wednesday, yet it remains up 1.90% in the week as traders ditch the grey metal in favor of the Greenback.
Read more »
Silver Price Forecast: XAG/USD finds support at $30.30 to trim some lossesSilver Prices (XAG/USD) are trading in a mild positive bias on Monday, trimming some losses after the rejection from levels above $32.00 last week.
Read more »
Hyperliquid Soars to New ATH of $29, Fueled by Record TVL and Whale AccumulationHyperliquid's native token, HYPE, has reached an all-time high of $29, driven by a surge in Total Value Locked (TVL) and Open Interest, coupled with notable whale activity. The decentralized platform, launched on November 29, has seen its TVL skyrocket to $3.04 billion, surpassing major blockchains like Sui, Avalanche, and Aptos. Lookonchain data reveals whales accumulating HYPE tokens, further bolstering the bullish momentum.
Read more »
Cubs add Matthew Boyd to rotation with $29 million, 2-year contract, AP source saysThe Chicago Cubs have added Matthew Boyd to their rotation in their first big offseason move, agreeing to a $29 million, two-year contract with the veteran left-hander, according to a person familiar with the negotiations.
Read more »
Cubs add Matthew Boyd to rotation with $29 million, 2-year contract, AP source saysThe Chicago Cubs have added Matthew Boyd to their rotation in their first big offseason move, agreeing to a $29 million, two-year contract with the veteran left-hander.
Read more »