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Silver ($XAG) Commodity Forecast: Up 5.1% Today

Morpher AI identified a bullish signal. The commodity price may continue to rise based on the momentum of the good news.

What is Silver?

Silver, a precious metal widely used in various industries including electronics and solar panel production, experienced a bullish movement today, reaching an 8-week high of $30.19 per ounce.

Why is Silver going up?

XAG commodity is up 5.1% on Sep 13, 2024 13:44

  • Silver surged to an 8-week high and was on track for a strong weekly gain, driven by speculations of a supersized 50 basis point rate cut by the US Federal Reserve.
  • Expectations of major central banks, including the Federal Reserve, beginning a rate-cutting cycle boosted investor sentiment towards silver.
  • The growth of the renewable energy sector, where silver plays a crucial role in solar panel production, also contributed to the positive outlook for silver prices.
  • Mixed economic indicators in China, the world's top consumer of silver, added to the market's evaluation of demand prospects and further supported the bullish movement in the silver market.

XAG Price Chart

XAG News

Silver Hits 8-week High

Silver increased to an 8-week high of 30.19 USD/t.oz. Over the past 4 weeks, Silver gained 9.42%, and in the last 12 months, it increased 33.37%.

Silver Heads for Strong Weekly Gain

Silver rallied toward $30 per ounce and was set to advance over 7% this week, underpinned by speculations that the US Federal Reserve will deliver a supersized 50 basis point rate cut next week. Analysts pointed to media reports from Financial Times and the Wall Street Journal suggesting the Fed’s decision would be a close call, as well as higher US jobless weekly claims as the main factors driving recent expectations. Markets are currently assigning a 57% chance that the Fed will deliver a 25 basis point rate cut, with a 43% odds seen for a larger 50 bps reduction, according to CME’s FedWatch Tool. Additionally, markets are evaluating demand prospects in China, the world's top consumer, after mixed economic indicators, along with the growth of the renewable energy sector, where silver is a crucial component in solar panel production.

Silver Rallies on Rate-Cut Optimism

Silver jumped almost 4% to $29.8 per ounce on Thursday, building on recent gains fueled by expectations that major central banks will soon begin a rate-cutting cycle. The European Central Bank lowered rates by another 25 basis points, while investors are anticipating the Federal Reserve to also begin easing policy next week. According to the CME FedWatch tool, markets now see a 71% probability of a 25-basis-point rate cut at the Fed's September 17-18 meeting, with a 29% chance of a larger 50-basis-point cut. Additionally, markets are evaluating demand prospects in China, the world's top consumer, after mixed economic indicators, along with the growth of the renewable energy sector, where silver is a crucial component in solar panel production.

Silver Climbs Ahead of Expected Rate Cuts

Silver climbed toward $29 per ounce, extending recent gains in the lead up to expected interest rate cuts from major central banks. The European Central Bank is widely expected to lower rates again on Thursday, while markets will look for clues on whether the ECB will leave the door open to cuts in October and December as well. The Federal Reserve is also anticipated to start easing policy when it meets next week and is expected to deliver a smaller 25 basis point rate cut following a mixed US inflation report for August. Elsewhere, investors continued to assess the demand outlook in top consumer China following a mixed set of economic data, as well as trends in the renewable energy sector which utilizes silver in solar panels.

Silver Steadies Ahead of US Inflation Test

Silver steadied around $28.3 per ounce on Tuesday after experiencing heightened volatility in recent sessions, as investors braced for a key US inflation reading this week that could offer clues on the potential scale of an expected Federal Reserve interest rate cut this month. A mixed US jobs report for August provided little clarity on the rates path, although Fed officials including Christopher Waller and John Williams indicated support for the first reduction at the upcoming meeting. Traders now see about a 71% chance of a 25 basis point reduction next week, with a 29% chance assigned to a 50 bps cut, according to the CME FedWatch tool. However, prospects of a US recession and economic uncertainties in top consumer China continued to weigh on commodity markets.

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Silver Price History

13.08.2024 - XAG Commodity was up 5.1%

  • Silver surged to an 8-week high and was on track for a strong weekly gain, driven by speculations of a supersized 50 basis point rate cut by the US Federal Reserve.
  • Expectations of major central banks, including the Federal Reserve, beginning a rate-cutting cycle boosted investor sentiment towards silver.
  • The growth of the renewable energy sector, where silver plays a crucial role in solar panel production, also contributed to the positive outlook for silver prices.
  • Mixed economic indicators in China, the world's top consumer of silver, added to the market's evaluation of demand prospects and further supported the bullish movement in the silver market.

23.04.2024 - XAG Commodity was down 5.2%

  • Silver prices dipped as investors reassessed the Federal Reserve's monetary policy outlook, with some officials indicating a cautious approach towards rate cuts.
  • Profit-taking and mixed economic data from the US, including unexpected stalling in industrial production and surprising export and import prices, contributed to the downward pressure on silver prices.
  • Despite recent highs and a strong year-to-date performance, silver faced selling pressure as investors weighed the potential timing and extent of Fed rate reductions.
  • The bearish movement in silver today highlights the market's sensitivity to shifting monetary policy expectations and economic indicators, leading to a temporary pullback in prices.

20.02.2024 - XAG Commodity was up 2.3%

  • Silver prices surged above $25 per ounce due to the Federal Reserve's decision to maintain rates at a 23-year high, increasing investor confidence in the metal's safe-haven appeal.
  • Geopolitical tensions and an improved industrial outlook from China also contributed to silver's rally, despite cautious market sentiment ahead of major central bank policy meetings.
  • The metal's upward trend was driven by rising war and inflation risks, leading investors to seek refuge in precious metals like silver in light of global uncertainties.
  • Despite a slight dip following strong US economic data, such as a higher-than-expected Producer Price Index and lower unemployment claims, silver continued its climb, demonstrating resilience amid evolving market conditions.

22.02.2024 - XAG Commodity was down 5.0%

  • Silver prices fell today after reaching near-1-year highs, as investors reacted to the Fed's decision to maintain projections for interest rate cuts in 2024. This bearish movement can be attributed to profit-taking and a shift in sentiment towards non-yielding assets.
  • The decision by the Swiss National Bank to reduce its benchmark rate also added pressure on silver prices, as it signaled a potential easing cycle among major regulators.
  • Despite the bearish movement, silver's overall upward trend in recent weeks and months can be attributed to factors such as rising geopolitical tensions, an improved industrial outlook in China, and safe-haven demand amid increased war and inflation risks.
  • Investors will continue to monitor central bank policy meetings and geopolitical developments for cues on the future direction of silver prices.

07.05.2024 - XAG Commodity was down 5.2%

  • Silver prices retreated from an 11-year high of $32 per ounce to $30.5 as the US imposed tariffs on Chinese solar cell imports, impacting silver demand in key industries and regions.
  • Strong domestic demand in China, particularly highlighted by the connection of the world's largest solar farm in Xinjiang, helped limit the decline in silver prices.
  • Expectations of major central banks cutting interest rates in upcoming decisions reduced the opportunity cost of holding non-yielding assets like silver, further influencing the market movement.
  • Despite briefly trading above $30, the overall bearish sentiment prevailed due to the combination of trade tensions, industrial demand concerns, and central bank rate cut expectations.

12.03.2024 - XAG Commodity was up 5.0%

  • Silver surged above $29 per ounce to levels last seen in 2013, driven by increased safe-haven demand amid rising inflation pressures and geopolitical risks in the Middle East, as well as positive economic indicators from major economies like the US, Germany, and China.
  • The metal stabilized below $28 after hitting a multi-year high, as investors assessed the Fed's monetary policy outlook following mixed US economic data, with inflation rates coming in below expectations but still impacting expectations of future rate cuts.
  • Silver prices dropped below $28 in reaction to hotter-than-expected US CPI data, reducing market expectations for imminent Fed interest rate cuts, which diminished the appeal of non-yielding assets like silver.
  • Despite fluctuations, silver maintained a positive outlook, tracking the rally in gold and benefiting from increased consumer and industrial demand, particularly in sectors like chip and solar panel production, while also facing pressure from easing geopolitical tensions and shifting expectations regarding central bank policies.

07.05.2024 - XAG Commodity was down 6.4%

  • Silver prices retreated from an 11-year high of $32 per ounce to below $30 as strong economic data in the United States supported a hawkish outlook for the Federal Reserve, leading to a decline in demand for non-yielding bullion assets like silver.
  • The US imposing 50% tariffs on Chinese imports of solar cells, a key industry for silver, contributed to the decline as it disrupted demand for panels in key factories in Asia, although strong domestic demand in China partially offset the drop.
  • Expectations of rate cuts by major central banks, such as the ECB and BoC, reduced the opportunity cost of holding non-yielding assets like silver, further pressuring prices.
  • Despite the retreat, silver managed to trade above $30 per ounce, indicating some resilience in the market amidst the various economic and geopolitical factors influencing its price movements.

25.06.2024 - XAG Commodity was down 5.3%

  • Silver experienced a strong bearish movement, dropping to an 11-week low, as global economic uncertainties and a dismal industrial outlook weighed on the market.
  • Concerns about slowing manufacturing activity in major economies, particularly in China, contributed to the decline in silver prices.
  • The surprise cut in China's lending rates and anticipation of interest rate cuts by the US Federal Reserve added to the downward pressure on silver.
  • Despite recent stabilization attempts and supportive measures like India's reduction in import duties, silver continued to face challenges due to weakening demand outlooks and lack of concrete policy measures to boost the economy.

25.06.2024 - XAG Commodity was down 5.4%

  • Silver prices dropped to an eleven-week low below $28 per ounce due to a dismal industrial outlook and global economic uncertainties, with preliminary PMI readings indicating contractionary manufacturing activity in major economies.
  • Heightened demand concerns in top consumer China, coupled with a lack of concrete policy measures to boost the economy, further pressured silver prices.
  • China's surprise cut to its lending facility rate and the lack of new stimulus measures during the Third Plenum failed to excite investors, contributing to the downward pressure on silver.
  • The anticipation of key US economic data and expectations of interest rate cuts by the Federal Reserve added to the market uncertainty, despite silver stabilizing briefly above $29.25 per ounce in the previous sessions.

25.06.2024 - XAG Commodity was down 5.1%

  • Silver hit a 4-week low as demand worries in top consumer China and a rebound in the dollar weighed on the market sentiment.
  • The stabilization of silver ahead of key US economic data indicates investors are closely monitoring the Federal Reserve's monetary policy decisions.
  • Despite rate cuts by the People’s Bank of China, silver extended losses due to a lack of concrete stimulus measures outlined during the Third Plenum, contributing to the bearish movement.
  • The expectation of interest rate cuts by the US Federal Reserve in September might provide some support to silver prices in the near future.

06.07.2024 - XAG Commodity was down 5.0%

  • Silver prices plummeted to $27 per ounce, marking a three-month low, as concerns over economic growth and a broader selloff in financial markets outweighed safe-haven demand for the metal.
  • The bearish outlook on manufacturing and industrial metals, coupled with fears of a US recession, contributed to the decline in silver prices.
  • Despite the downward pressure, silver remains supported by expectations of aggressive interest rate cuts by the US Federal Reserve in the coming months, reflecting investors' bets on monetary policy easing.
  • Geopolitical tensions, such as the killing of a Hamas leader in Iran, added some support to silver's safe-haven appeal, although market uncertainties and the overall risk-off sentiment weighed heavily on the metal's performance.

05.07.2024 - XAG Commodity was down 5.2%

  • Silver prices fell as risk-off sentiment dominated markets, fueled by fears of a US recession and disappointing job data, leading investors towards safer assets.
  • The anticipation of a US Federal Reserve rate cut in September supported precious metals, but concerns over economic downturns weighed on silver prices.
  • Geopolitical tensions, such as the killing of a Hamas leader in Iran, added to safe-haven demand for silver, although mixed economic data from China and central bank decisions kept the metal's movement muted.
  • Overall, the bearish movement in silver can be attributed to a combination of economic uncertainties, geopolitical risks, and market speculations surrounding central bank policies.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.