Silver ($XAG) Commodity Forecast: Down 5.4% Today

What is Silver?

Silver is a precious metal often used for investment and industrial purposes. It is considered a safe-haven asset during times of economic uncertainty.

Why is Silver going down?

XAG commodity is down 5.4% on Nov 6, 2024 13:43

• Silver prices experienced a bearish movement due to the following reasons:
• The stronger US dollar following early US election results favoring the Republican candidate Donald Trump led to a decrease in demand for safe-haven assets like silver.
• Speculation around the US election outcome and potential market impact, as well as anticipation of the Federal Reserve's policy decisions, contributed to cautious market sentiment.
• Reports of potential fiscal stimulus measures in China and monetary policy decisions in various major economies added to the uncertainty, impacting silver prices negatively.
• The overall economic data, including US jobs creation and global borrowing costs, influenced market expectations and investor behavior, leading to a decline in silver prices.

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XAG Technical Analysis

XAG News

Silver Prices Fall as US Election Results Roll In

Silver prices dropped to around $31.8 per ounce on Wednesday, hovering at its lowest level in nearly three weeks, weighed down by a stronger US dollar after early exit polls showed favorable results for the Republican candidate Donald Trump in the US presidential election. This renewed optimism surrounding the "Trump trade" has boosted market sentiment, putting downward pressure on safe-haven assets like silver. Additionally, investors are keeping an eye on the balance of power in Congress, as a sweep by either party could lead to significant changes in fiscal and tax policies, impacting broader market dynamics. Attention is also focused on the Federal Reserve’s upcoming two-day policy meeting, where the central bank is expected to implement a more cautious 25-basis-point rate cut. Meanwhile, investors are monitoring the ongoing National People’s Congress in China, where authorities are anticipated to unveil additional fiscal stimulus measures.

Silver Prices Steady Ahead of US Election

Silver prices held steady around $32.50 per ounce on Tuesday, hovering near a two-week low as caution dominated market sentiment ahead of the highly anticipated US presidential election. Markets are speculating that a Trump victory could spark a broader risk-on rally, while a Harris win might ease tariff concerns, potentially boosting demand for metals. Investors are also awaiting the Federal Reserve’s policy decision later this week, with a more cautious 25-basis-point rate cut widely expected. In addition, upcoming monetary policy decisions in other major economies, including Australia, the UK, Brazil, Poland, and Norway, are contributing to the market’s cautious outlook. Meanwhile, attention is on the ongoing National People’s Congress in China, where authorities are expected to reveal more details on fiscal stimulus measures. Media reports suggest China may be considering a stimulus package exceeding 10 trillion yuan to support economic growth.

Silver Prices Rise as Dollar Falls

Silver prices rose above $32.60 per ounce on Monday, rebounding slightly from a two-week low as the dollar weakened amid growing uncertainty surrounding the U.S. presidential election and the upcoming Federal Reserve interest rate decision. A weaker dollar tends to increase demand for dollar-denominated commodities like silver. Additionally, hopes for further stimulus measures from China contributed to positive sentiment as the National People’s Congress commenced its five-day meeting. Chinese authorities are expected to unveil more details on debt and fiscal initiatives as part of a broader plan to stimulate growth, with media reports suggesting a potential stimulus package exceeding 10 trillion yuan. Investors are also preparing for monetary policy decisions from central banks in the UK, Australia, Brazil, Poland, and Norway, adding to the market’s cautious outlook.

Silver Prices Hoover Near 2-week Low

Silver was trading near 32.6USD/t on Friday, close to 2-week low as investors continued to assess Fed policy outlook and demand for safety ahead of the upcoming US elections.The ISM manufacturing PMI fell more than expected but mostly becouse the price pressures intensifed. Earlier, the labout data showed US jobs creation slowed much more than anticipated but mostly due to strikes and distortions related to hurricanes. Still, silver prices are expected to finish the week at least 3% lower as economic data from Eurozone, combined with the UK’s new government budget reeinforced the view of less dowish central banks. Meanwhile, republican candidate Donald Trump and Democratic Vice President Kamala Harris are closely matched in several polls, yet some investors are making trades in anticipation of a Trump victory.

Silver Rebounds Slightly

Silver prices rose by 0.5% on Friday, reaching $33 per ounce, as week U.S. payrolls data boosted the appeal of safe heaven assets and brought back the possiblity of speed up in interest rate cuts in the US. The US economy added only 12K jobs in October, compared to market expectations of 113K and September's downwardly revised 223K as employment have been impacted by Hurricanes Helene and Milton and strikes at Boeing. Still, silver prices are expected to finish the week at least 2% lower as economic data from Eurozone, combined with the UK’s new government budget, drove up borrowing costs and shook expectations of imminent rate cuts.

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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.

06.10.2024 - XAG Commodity was down 5.4%

• Silver prices experienced a bearish movement due to the following reasons:
• The stronger US dollar following early US election results favoring the Republican candidate Donald Trump led to a decrease in demand for safe-haven assets like silver.
• Speculation around the US election outcome and potential market impact, as well as anticipation of the Federal Reserve's policy decisions, contributed to cautious market sentiment.
• Reports of potential fiscal stimulus measures in China and monetary policy decisions in various major economies added to the uncertainty, impacting silver prices negatively.
• The overall economic data, including US jobs creation and global borrowing costs, influenced market expectations and investor behavior, leading to a decline in silver prices.

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.

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.