Silver Price Forecast: XAG/USD falls toward 11-month lows after slipping below $54.00

Silver price (XAG/USD) has dropped towards its 11-month low, falling below $54.00, after a minor gain in the previous day. Non-yielding Silver is trading near $53.01, set on Monday. Inflation concerns persist due to high energy prices, suggesting potential further monetary tightening. However, easing downside pressure may occur as falling oil prices and pre-Federal Reserve rate decision bargain-hunting provide some support.

Diplomatic efforts to resolve US-Iran tensions have led to continued security discussions among Iran, Saudi Arabia, Pakistan, and Turkey. The Federal Reserve is expected to keep interest rates unchanged at its upcoming October meeting, with a potential rate hike in December. The European Central Bank and Bank of Japan will also maintain their interest rates, while the Bank of Canada is expected to raise rates by 25 basis points this week.

The daily chart shows XAG/USD at $53.80, with a bearish near-term bias as it trades below key moving averages. The 14-day RSI indicates oversold conditions, hinting at stretched downside momentum. Technical analysis suggests resistance at $55.74 and a stronger barrier at $60.74, while no immediate support levels are apparent. Silver's price is influenced by various factors, including geopolitical events, interest rates, the US Dollar, investment demand, mining supply, and recycling rates.

It often correlates with Gold's movements, with their relative valuation determined by the Gold/Silver ratio.