Silver Price Forecast: XAG/USD rises above $60.00 as inflation fears ease
Silver price (XAG/USD) gains ground after three days of losses, trading around $60.10 per troy ounce during Asian hours on Friday. Non-yielding Silver gains support as a decline in oil prices eases inflationary concerns and Fed rate hike expectations.
Silver price (XAG/USD) surged above $60.00 during Asian trading hours on Friday after three days of losses, trading at $60.10 per troy ounce. A decline in oil prices helped ease inflationary concerns and reduced expectations of a Federal Reserve rate hike, supporting non-yielding Silver. US President Donald Trump announced productive discussions with Iran on social media, signaling a potential de-escalation of tensions and easing oil prices.
The chance of a 25 basis points (bps) interest rate hike at the Federal Reserve's policy meeting later this month dropped from 38% to 17.7%, down from 38% a week ago. This shift in market expectations, coupled with hawkish statements from Federal Reserve officials, provided support for Silver's rally. Technical analysis suggests a bearish near-term bias for Silver, with the price still under both short-term and medium-term Exponential Moving Averages (EMAs).
However, a sustained break above the 50-period EMA around $63.39 could signal a more constructive recovery.
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