Silver ($XAG) Commodity Forecast: Up 6.3% Today

What is Silver?

Silver, a precious metal known for its industrial and investment uses, experienced a strong bullish movement today. The market for silver has been influenced by various factors such as safe-haven demand, geopolitical tensions, economic data, and central bank policies.

Why is Silver going up?

XAG commodity is up 6.3% on Oct 20, 2024 21:01

• Silver prices surged to nearly a 12-year high of $33 per ounce, driven by increased demand for safe-haven assets amidst uncertainties surrounding the upcoming US presidential election and escalating tensions in the Middle East.
• Positive economic data from China, the top global metals consumer, further boosted demand for silver, while the European Central Bank's rate cut aimed at controlling inflation also impacted the market positively.
• The rally in silver prices was also supported by a drop in Treasury yields, weak US manufacturing data, and expectations regarding the Federal Reserve's next move on interest rates, indicating a complex interplay of global economic factors influencing the precious metal's market movement.
• Overall, the bullish movement in silver can be attributed to a combination of geopolitical uncertainties, economic indicators, and market speculations, highlighting the metal's role as a safe-haven asset in times of global instability.

XAG Price Chart

XAG Technical Analysis

XAG News

Silver Surges 4% to Nearly 12-Year High

Silver prices soared to $33 per ounce on Friday, reaching their highest level in nearly 12 years. This rally followed gold’s rise, driven by increased demand for safe-haven assets amid uncertainty around the upcoming US presidential election and escalating Middle East tensions. With just under three weeks to go, market forecasts show a tight race between former President Donald Trump and Vice President Kamala Harris, slightly favoring Trump. Additionally, concerns of a broader regional conflict were fueled by the killing of Hamas leader Yahya Sinwar by Israeli forces. Positive economic data from China, the top global metals consumer, further boosted demand, while the European Central Bank’s third rate cut of the year, aimed at controlling inflation, also impacted the market.

Silver Hits Near 12-year High

Silver increased to a near 12-year high of 32.96 USD/t.oz. Over the past 4 weeks, Silver gained 6.96%, and in the last 12 months, it increased 42.87%.

Silver Gains on Safe-Haven Demand

Silver prices climbed above $32 per ounce on Friday, marching toward a two-week high and tracking a rally in gold prices as uncertainties around the upcoming US election and rising tensions in the Middle East spurred safe-haven demand for precious metals. Former President Donald Trump and Vice President Kamala Harris remained neck and neck just less than three weeks until the November US presidential election, with market predictions slightly favoring a Trump win. In the Middle East, Israeli forces killed Hamas leader Yahya Sinwar, raising fears of a wider regional conflict. Moreover, upbeat economic data in China lifted the demand outlook in the world’s top metals consumer. Elsewhere, the European Central Bank cut rates on Thursday for the third time this year, citing confidence in curbing inflation.

Silver Tracks Gold Higher

Silver prices climbed to $31.50 per ounce in mid-October, supported by a drop in Treasury yields and mirroring gains in gold. The decline in 10-year Treasury yields, driven by weak U.S. manufacturing data, boosted the appeal of non-yielding assets like precious metals. Investors are also focused on upcoming U.S. economic data, which could signal the Federal Reserve's next move on interest rates. Meanwhile, traders assessed China’s latest stimulus measures aimed at boosting its economy. In a weekend briefing led by Finance Minister Lan Foan, the government promised increased borrowing to support the property sector, subsidies for low-income households, and additional capital for state banks, though details on the package's size were scarce. Markets had been expecting a significant fiscal stimulus, estimated between 2 to 10 trillion yuan.

Silver Remains Volatile

Silver prices rebounded to around $31.5 per ounce on Monday after losing over 2% to as low as $30.8 earlier in the session, facing increased volatility as investors assessed top consumer China’s weekend stimulus announcements and the path fo US interest rate cuts. In a briefing on Saturday headed by Finance Minister Lan Foan, the government pledged to increase borrowing to support the property market, offer subsidies to low-income people and boost state banks’ capital without providing details on the size of the overall package. Markets were hoping for a major fiscal stimulus that could range between 2-10 trillion yuan. Meanwhile, commodities came under pressure on bets that the US Federal Reserve will not deliver further supersized rate cuts at its remaining meetings this year

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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.

20.09.2024 - XAG Commodity was up 6.3%

• Silver prices surged to nearly a 12-year high of $33 per ounce, driven by increased demand for safe-haven assets amidst uncertainties surrounding the upcoming US presidential election and escalating tensions in the Middle East.
• Positive economic data from China, the top global metals consumer, further boosted demand for silver, while the European Central Bank's rate cut aimed at controlling inflation also impacted the market positively.
• The rally in silver prices was also supported by a drop in Treasury yields, weak US manufacturing data, and expectations regarding the Federal Reserve's next move on interest rates, indicating a complex interplay of global economic factors influencing the precious metal's market movement.
• Overall, the bullish movement in silver can be attributed to a combination of geopolitical uncertainties, economic indicators, and market speculations, highlighting the metal's role as a safe-haven asset in times of global instability.

24.08.2024 - XAG Commodity was up 5.0%

• Silver experienced a strong bullish movement today, reaching $32.211 per ounce, up by 5%.
• The bullish trend can be attributed to the Federal Reserve's rate cut of 50 basis points, signaling potential further rate reductions and easing policies, which boosted investor confidence in silver as an alternative investment.
• Additionally, the weakening of the US dollar and expectations of policy easing in major economies like China further supported the bullish momentum for silver.
• The combination of these factors led to a surge in silver prices, highlighting the metal's sensitivity to macroeconomic events and monetary policy decisions.

04.09.2024 - XAG Commodity was up 3.5%

• Silver price rose to $31.3 per ounce today, driven by increasing Middle East tensions and demand for safe-haven assets amid geopolitical uncertainties.
• Expectations of central bank interest rate cuts and financial support measures in China have further boosted silver prices.
• Previous declines in silver costs were attributed to profit-taking after hitting a ten-year high. However, the overall positive market sentiment remains strong due to geopolitical tensions and supportive central bank actions.

18.08.2024 - XAG Commodity was down 2.9%

• Silver retreated from its recent highs as the Federal Reserve implemented a 50 bps rate cut, signaling potential further cuts, which raised concerns about future demand for the metal.
• Uncertainty surrounding the Fed's decision, along with disappointing economic data from China, added pressure on silver prices, reflecting a cautious sentiment among traders.
• The anticipation of a more aggressive rate cut by the Fed, driven by signs of a slowing labor market, outweighed positive inflation readings, contributing to the bearish movement in the silver market.
• Speculations about the Fed's decision, mixed economic indicators from China, and the growth of the renewable energy sector, where silver plays a crucial role, all played a part in influencing the downward movement of silver prices today.

18.09.2024 - XAG Commodity was up 5.1%

• Silver surged to a near 12-year high of $32.96 per ounce, driven by safe-haven demand amid uncertainties surrounding the upcoming US election and escalating tensions in the Middle East.
• The metal's rally was also supported by a drop in Treasury yields, weak US manufacturing data, and China's stimulus measures, all contributing to the appeal of non-yielding assets like silver.
• Volatility remained a key feature as investors closely monitored developments in China's stimulus announcements and speculated on the US Federal Reserve's stance on interest rate cuts, impacting the overall sentiment in the commodity market.
• Silver's upward trajectory underscores its role as a hedge against geopolitical risks and economic uncertainties, attracting investors seeking refuge in precious metals during times of market turbulence.

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.