Silver Faces Challenges as Risk Sentiment Increases
Silver (Xag/USD) is trading at around $32.91, grappling with pressures as traders process the latest news. Despite the ongoing geopolitical uncertainties, metals are feeling the strain. This is largely due to a stronger dollar and heightened risks, which diminish the attraction of safe-haven assets.
Nonetheless, silver appears to hold above the crucial support level of $32.75, indicating that buyers are still active, albeit at lower levels. Recent data shows that silver has dropped nearly 3% from its monthly high of about $33.85, highlighting a broader trend toward riskier investments.
Attention Turns to US Inflation and Federal Reserve Policies
Looking ahead, traders are likely to focus on US inflation data expected this week, which could provide clearer direction for gold and silver. The Consumer Price Index (CPI) is forecasted to rise by 4.1% year-on-year.
Furthermore, a speech by Fed Chairman Jerome Powell on Thursday will be closely observed for insights into the central bank’s views on future interest rate adjustments.
Short-term Outlook
Gold is under short-term pressure, with any drop below $3,259 potentially leading to a more significant correction toward $3,211. For silver, overcoming the $33.25 mark will be necessary to trigger an upward trend.
