Silver price surged near $31.00 in Thursday's European session as traders increased bets on the Federal Reserve (Fed) delivering more than one interest rate cut this year. The move followed mixed US inflation data, with headline inflation accelerating but core inflation surprisingly slowing. Traders now anticipate the first rate cut in June instead of September.
Silver price climbs to near $31.00 as traders reassess Fed monetary policy outlook after mixed US inflation data. Traders expect the Fed to cut interest rates twice this year. Silver price attempts to break above the upward-sloping trendline around $30.
85. Silver price moves higher to near $31.00 in Thursday’s European session. The white metal gains as traders have raised bets supporting the Federal Reserve to deliver more than one interest rate cut this year. According to the CME FedWatch tool, traders are pricing in two interest rate cuts this year, the first coming in June instead of September, as forecasted before the December inflation data were released. As measured by the Consumer Price Index , headline inflation accelerated to 2.9%, as expected; however, the core reading—which excludes volatile food and energy prices—surprisingly rose at a slower pace of 3.2%. Typically, signs of acceleration in Fed dovish bets bode well for non-yielding assets, such as Silver. Meanwhile, the US Dollar Index , which tracks the Greenback’s value against six major currencies, ticks higher to near 109.00 but has corrected from the two-year high of 110.00. 10-year US Treasury yields edge higher to near 4.66% but have come down from its yearly high of 4.80%. Silver technical analysis Silver price gathers strength to break above the upward-sloping trendline around $30.85, which is plotted from the 29 February 2024 low of $22.30 on a daily timeframe. The white metal rebounded strongly after discovering strong buying interest near the 200-day Exponential Moving Average , which is around $29.45. It then climbed above the 20-day EMA, which is around $30.00, suggesting a bullish near-term trend. The 14-day Relative Strength Index jumps to near 60.00. A fresh bullish momentum would trigger if its manages to break above 60.00. Silver daily chart Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar behaves as the asset is priced in dollars . A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver Fed Interest Rates Inflation 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.
Silver Price Dips Near $30 Amid Strong Bond Yields and Hawkish Fed SignalsSilver prices declined on Tuesday, approaching $30.20, due to persistent high bond yields and expectations of a hawkish stance from the Federal Reserve.
Read more »
Silver Price Slips as Investors Await Fed DecisionSilver prices decline ahead of the Federal Reserve's policy announcement, with traders anticipating a 25-basis-point interest rate cut. The Fed's decision and economic forecasts will impact investor sentiment and influence silver's trajectory.
Read more »
Silver Price Hits Three-Month Low Amid Fed Rate Hike ExpectationsSilver prices fell to a three-month low on Thursday as the Federal Reserve's hawkish stance and expectations for limited rate cuts in 2025 weighed on the precious metal. The BoJ also maintained its policy rate, further impacting market sentiment.
Read more »
Woman Bills Family $31 Each for Christmas DinnerA woman in Hampshire, England, is charging her family members $31 each to cover the cost of Christmas dinner. Abi Richards says this is the fourth year she has hosted Christmas and her family has always contributed to the cost of food and drink. This year, she decided to be more organized and keep track of expenses, billing eight adults for their share.
Read more »
Ring in the New Year in These ‘Luxurious’ $31 Pajamas with a Festive DetailThe Ekouaer Feather Trim Pajama Set is an Amazon deal at just $31, and they’re a favorite of buyers. The feather trim makes these pajamas a great New Year’s Eve outfit for those who plan on staying in.
Read more »
U.S. Recovers $31 Million in Social Security Payments Sent to Dead PeopleThe U.S. government has recovered over $31 million in Social Security payments mistakenly sent to deceased individuals. This recovery is just a fraction of the estimated $215 million the Treasury Department expects to reclaim during its three-year access to the Social Security Administration's 'Full Death Master File'. The Treasury is urging Congress to grant permanent access to this database to combat fraud and protect taxpayer dollars.
Read more »