Silver ($XAG) Commodity Forecast: Down 2.9% Today

Morpher AI identified a bearish signal. The commodity price may continue to fall based on the momentum of the negative news.

What is Silver?

Silver, a precious metal known for its industrial and investment uses, experienced a strong bearish movement today amidst market uncertainties and economic data releases.

Why is Silver going down?

XAG commodity is down 2.9% on Sep 18, 2024 19:49

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.

XAG Price Chart

XAG News

Silver Retreats After Fed Decision

Silver fell toward $30 per ounce, pulling back from its two-month high after the Federal Reserve implemented a 50 bps rate cut, the first since 2020. Although the rate cut was widely expected, there was uncertainty whether the Fed would opt for a more cautious 25 bps reduction. The central bank also signaled additional 50 bps cuts later this year, with a full percentage point reduction anticipated for next year. Meanwhile, upcoming monetary policy decisions from the Bank of England and the Bank of Japan, along with weak economic data from China, added to the pressure on silver. China, the world’s largest metals consumer, reported underwhelming figures for industrial output, retail sales, and fixed asset investment in August, alongside a rising urban unemployment rate and the steepest home price decline in nine years.

Silver Pulls Back as Fed Decision Awaited

Silver fell below $30.5 per ounce, retreating from two-month highs as traders turned cautious ahead of a highly-anticipated monetary policy decision from the Federal Reserve. The US central bank is widely expected to deliver its first rate cut in four years, although markets remain uncertain on whether it will reduce rates by 50 or 25 basis points. The Bank of England and the Bank of Japan will also decide on monetary policy this week. Moreover, disappointing economic data from China raised demand concerns in the world’s top metals consumer. Data released over the weekend showed that industrial output, retail sales and fixed asset investments in China missed forecasts in August. The urban unemployment rate also rose to a six-month high while home prices fell at the fastest pace in nine years.

Silver Hits 2-Month High on Dovish Fed Bets

Silver climbed to around $31, hitting a two-month high amid rising expectations that the Federal Reserve will opt for a more aggressive interest rate cut at this week’s meeting. Markets are currently pricing in a 59% chance that the Fed will deliver a larger 50 basis point rate cut on Wednesday, up from 25% a month ago, while odds for a modest 25 bps reduction stands at 41%, according to CME’s FedWatch Tool. Those expectations came as signs of a slowing labor market outweighed hotter-than-anticipated readings in key inflation gauges last week. Meanwhile, disappointing economic data from China raised demand concerns in the world’s top metals consumer. Data released over the weekend showed that industrial output, retail sales and fixed asset investments in China missed forecasts in August. The urban unemployment rate also rose to a six-month high while home prices fell at the fastest pace in nine years.

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 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.

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.

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.

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.

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.

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Date

Sep 18, 2024 19:49

Content

Silver ($XAG) Commodity Forecast: Down 2.9% Today What is Silver? Why is Silver going down? XAG XAG Price Chart XAG News Trending Today Silver Price History 13.08.2024 - XAG Commodity was up 5.1%18.08.2024 - XAG Commodity was down 2.9%23.04.2024 - XAG Commodity was down 5.2%22.02.2024 - XAG Commodity was down 5.0%07.05.2024 - XAG Commodity was down 5.2%