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    Silver Price Forecast: XAG/USD stretches lower to near $24.90 amid a market caution

    FXStreet
    Updated Mar 20, 2024 08:51
    Mitrade

    ■  Silver price extends losses amid a market caution on Wednesday.

    ■  Fed is widely expected to maintain its current interest rates at March’s meeting.

    ■  The prolonging of higher interest rates dampens metal prices including Silver.


    Silver price loses ground for the third consecutive session, trading lower near $24.90 per troy ounce during early European trading hours on Wednesday. Silver price encounters challenges as the market adopts a cautious stance ahead of the Federal Reserve (Fed) interest rate decision.


    The Fed is widely expected to maintain its current interest rates at March’s policy meeting. However, the potential for a hawkish tone from the Fed could exert pressure on metal prices, including Silver. Investors are closely monitoring the Fed's decision for any signals that may impact the future trajectory of interest rate cuts in 2024 and, consequently, metal prices.


    Fed Chair Jerome Powell's press conference was a critical focal point. A hawkish stance from the Fed, suggesting prolonged high rates, could dampen demand for gold and its counterparts, reversing recent gains driven by rate cut expectations.


    While other major central banks are expected to leave their current interest rates unchanged, market attention will focus on signals regarding the potential initiation of monetary easing. Inflationary pressures from the United States (US) prompted a readjustment of the probability of interest rate cuts in the June and July meetings by the Fed to around 59.2% and 76.0%, respectively. The prospect of higher interest rates has diminished the appeal of non-yielding assets like Silver.


    Nevertheless, Silver could have received support from rising geopolitical tensions and an improved industrial outlook from China, the top metals consumer. China's industrial production, fixed asset investment, and retail sales have exceeded forecasts. The People's Bank of China (PBoC) has decided to keep policy rates unchanged at 3.45%.


    XAG/USD


    Overview
    Today last price 24.91
    Today Daily Change 0.00
    Today Daily Change % 0.00
    Today daily open 24.91
     
    Trends
    Daily SMA20 23.8
    Daily SMA50 23.16
    Daily SMA100 23.41
    Daily SMA200 23.32
     
    Levels
    Previous Daily High 25.16
    Previous Daily Low 24.73
    Previous Weekly High 25.45
    Previous Weekly Low 24.01
    Previous Monthly High 23.5
    Previous Monthly Low 21.93
    Daily Fibonacci 38.2% 24.89
    Daily Fibonacci 61.8% 24.99
    Daily Pivot Point S1 24.71
    Daily Pivot Point S2 24.51
    Daily Pivot Point S3 24.29
    Daily Pivot Point R1 25.14
    Daily Pivot Point R2 25.36
    Daily Pivot Point R3 25.56

    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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