Silver Price Forecast: XAG/USD rises to near $69.00 ahead of US PCE inflation data

Silver prices have climbed for two days straight, reaching nearly $69.00 per troy ounce prior to the release of US PCE inflation data. This upward trend was triggered by the US Treasury's decision to double liquidity-support buybacks for longer-dated notes and bonds, which put downward pressure on the US Dollar. As a result, the USD fell to its lowest level in over three months, creating a favorable environment for precious metals like silver.

Analysts from Deutsche Bank noted that the 2-year, 10-year, and 30-year Treasury yields all dropped, with the 10-year yield declining the most in two months. A decline in crude oil prices has also helped alleviate broader inflation concerns, further boosting investor appetite for silver as an attractive alternative asset. Industrial demand for silver remains strong, particularly in sectors such as photovoltaic solar panel manufacturing, electric vehicle production, and artificial intelligence data centers.

Traders will be watching for insight from upcoming Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium on Friday, as well as the US Personal Consumption Expenditures (PCE) release for clues on potential interest rate adjustments in September.