XAG/USD posts fresh multi-year high at $30.50 on firm Fed rate-cut prospects
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Silver price prints a fresh multi-year high at $30.50 amid firm speculation for Fed rate cuts. The US Dollar falls back as investors see the Fed reducing interest rates from September. Fed officials want to see more good inflation data to gain confidence that price pressures will return to the 2% target. Silver price (XAG/USD) refreshes multi-year high at $30.50 in Friday’s New York session. The white metal strengthens on firm speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting. The confidence of investors for the Fed to begin lowering interest rates from September has strengthened as the United States Consumer Price Index (CPI) report for April has indicated that progress in the disinflation process has resumed after stalling in the January-March period. The scenario is favorable for non-yielding assets such as Silver but weighs on bond yields and the US Dollar. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, retreats from the intraday high of 104.80. In spite of an expected decline in the US inflation, Fed officials have maintained a hawkish guidance on interest rates. St. Louis Fed Bank President Loretta Mester said on Thursday inflation will take longer to reach the 2% target than what she previously thought.” She emphasized the need to accumulate more data to have a clearer picture of the inflation outlook. Silver technical analysis Silver price has posted a fresh multi-year high at $30.55. Earlier, Silver price recovers sharply after discovering buying interest near the horizontal support plotted from 14 April 2023 high around $26.09 on a daily timeframe. The above-mentioned support was earlier a major resistance for the Silver price bulls. The white metal is approaching the multi-year high at $29.80. The near-term outlook of Silver has improved as it…
Filed under: News - @ May 17, 2024 9:12 pm