Silver faces headwinds from hawkish Fed expectations
Silver (XAG/USD) is trading around $29.84 after hitting an intraday low of $29.74. Like gold, silver is also under pressure from softer US inflation data and strong US employment data. Expectations of rising U.S. Treasury yields and tight monetary policy from the Federal Reserve continue to reduce silver's appeal as a safe-haven asset.
Silver's performance also reflects broader market trends favoring riskier assets as concerns about aggressive rate hikes ease. However, geopolitical developments have made investors cautious, providing some support for precious metals.
Upcoming CPI data and geopolitical uncertainty remain key factors
Market participants are closely monitoring the upcoming U.S. Consumer Price Index (CPI) report for clarity on the Federal Reserve's policy stance. Any surprise in inflation can have a big impact on gold and silver prices.
Geopolitical risk also remains an important factor. Escalating tensions in Ukraine and the Middle East have increased uncertainty, but potential ceasefire talks in Qatar could change the risk landscape.
short term forecast
Gold has consolidated near $2,675 and is looking for bullish momentum to break above $2,658.88. Silver is facing resistance at $30 and support at $29.40.
