Silver Price Forecast: XAG/USD slips below $51.50 ahead of US key economic data

Silver price (XAG/USD) fell below $51.50 on Thursday ahead of key US economic data, as a stronger US Dollar weighed on the precious metal. The Federal Reserve's hawkish sentiment, driven by hotter-than-expected US Consumer Price Index inflation data, has led traders to increase expectations of a December rate hike. Market participants are now focusing on upcoming US economic data, including weekly Jobless Claims, existing home sales, and producer inflation figures, to gauge the Federal Reserve's monetary policy trajectory.

The XAG/USD trades at $51.40, with a bearish near-term bias due to price being below both short- and medium-term trend resistance. Technical analysis suggests immediate resistance at $51.99 and a more significant barrier at $57.29. The FXS Fed Sentiment Index at 145.61 reinforces expectations of tightening policy, which continues to impact silver prices.

Silver is a highly traded precious metal used as a store of value and a hedge during high-inflation periods, with its price influenced by factors such as geopolitical events, interest rates, and industrial demand.