Silver prices (XAG/USD) found a temporary foothold near the key psychological support of $30 during Friday’s European session. However, the precious metal remains on fragile footing after a sharp sell-off over the past two trading sessions, as investors grow skeptical about the Federal Reserve pivoting to rate cuts as soon as September.
Fed Rate Cut Bets Diminish on Hawkish Rhetoric, Robust Data
According to the CME FedWatch tool, the probability of a rate cut in September has declined to 53% from 64% a week ago. This erosion in dovish Fed bets comes amid increasingly hawkish commentary from central bank officials emphasizing the need to keep rates higher for longer until inflation shows sustained progress toward the 2% target.
Upbeat US economic data, including better-than-expected May PMI figures showing the fastest expansion in over two years, have also fueled doubts about an imminent policy pivot.
Strong US Dollar Weighs on Silver's Appeal
The US Dollar Index (DXY) has exhibited strength near the 105 level, propelled by the Fed’s hawkish rate stance and firm economic prospects. A robust dollar tends to diminish silver’s appeal as it makes the precious metal more expensive for buyers holding other currencies.
All eyes will now be on the US Durable Goods Orders data for April due later today. While a decline of 0.8% is expected after March’s 2.6% gain, any upside surprise could further bolster the dollar and dampen silver’s allure as a haven asset.
As the outlook for Fed policy and the US economy continues to evolve, silver’s price trajectory remains highly data-dependent. Any resurgence in economic growth concerns or a more dovish tilt from the Fed could quickly revive safe-haven demand and buoy the precious metal’s prices.
| OVERVIEW | |
|---|---|
| Today last price | 30.45 |
| Today Daily Change | 0.32 |
| Today Daily Change % | 1.06 |
| Today daily open | 30.13 |
| TRENDS | |
|---|---|
| Daily SMA20 | 28.57 |
| Daily SMA50 | 27.39 |
| Daily SMA100 | 25.2 |
| Daily SMA200 | 24.25 |
| LEVELS | |
|---|---|
| Previous Daily High | 30.98 |
| Previous Daily Low | 30.07 |
| Previous Weekly High | 31.6 |
| Previous Weekly Low | 27.97 |
| Previous Monthly High | 29.8 |
| Previous Monthly Low | 24.75 |
| Daily Fibonacci 38.2% | 30.42 |
| Daily Fibonacci 61.8% | 30.63 |
| Daily Pivot Point S1 | 29.8 |
| Daily Pivot Point S2 | 29.48 |
| Daily Pivot Point S3 | 28.89 |
| Daily Pivot Point R1 | 30.72 |
| Daily Pivot Point R2 | 31.31 |
| Daily Pivot Point R3 | 31.63 |
