Silver ($XAG) Commodity Forecast: Down 0.1% Today

What is Silver?

Silver is a precious metal often utilized for industrial purposes and seen as a safe-haven asset during economic instability. Various factors, including geopolitical tensions, economic indicators, and demand from significant consumers like China, influence the silver market.

Why is Silver going down?

XAG commodity is down 0.1% on Jan 6, 2025 14:20

• The recent downward trend in the silver market is linked to worries about a more aggressive stance from the Federal Reserve and uncertain industrial demand for silver.
• Projections by the Federal Reserve indicating a potential decrease in rate cuts in the upcoming year prompted investors to reduce exposure to non-interest-bearing bullion assets, resulting in a negative impact on silver prices.
• Feeble manufacturing figures coming from China and excessive capacity in the solar panel sector further intensified the pressure on silver prices, constraining the forecast for demand from vital industrial segments.
• Despite previous instances of positive economic prospects and safe-haven interest, the current market shift highlights the influence of specific factors such as Federal Reserve policy forecasts and uncertainties regarding industrial demand on silver prices.

XAG Price Chart

XAG Technical Analysis

XAG News

Silver Holds Steady Ahead of Key US Data

Silver prices remained steady around $29.50 per ounce on Monday as investors cautiously awaited key US economic data that could impact the Federal Reserve's monetary policy outlook. Among the upcoming reports, markets are particularly focused on the monthly US jobs report due Friday, which could offer insights into whether silver will rebound further. The white metal also received support from a positive economic outlook in China, the world's top consumer of silver. Beijing recently pledged "more proactive" macroeconomic policies and lower interest rates this year to stimulate growth. Additionally, data showed China’s services sector grew at a seven-month high in December, signaling resilient consumption.

Silver Rebounds Amid Safe-Haven Demand

Silver prices climbed above $29.50 per ounce on Friday, recovering from near four-month lows, in tandem with a rise in gold prices as ongoing geopolitical and economic uncertainties fueled safe-haven demand for precious metals. US President Joe Biden was reportedly briefed on contingency plans to strike Iran’s nuclear facilities if Tehran made significant progress toward developing a nuclear bomb, just weeks before Donald Trump’s inauguration. Additionally, policy uncertainties surrounding the incoming Trump administration also drove inflows into safer assets. In China, pledges from Beijing for "more proactive" macroeconomic policies and lower interest rates this year helped stabilize market sentiment. However, weaker-than-expected manufacturing data raised concerns over demand in the world’s top metals consumer. The Caixin/S&P Global Manufacturing PMI dropped to 50.5 in December from 51.5 in November, missing forecasts of 51.7.

Silver Drops to Over 3-Month Low

Silver eased to below the $29 per ounce mark, the lowest level since September, amid the outlook of a hawkish Fed and uncertain demand for silver’s industrial utility. Concerns of stubborn inflation drove the FOMC to project fewer rate cuts for the upcoming year, driving markets to trim their exposure to non-yielding bullion assets. While the earlier rate cuts by the Fed supported bullion enough to raise silver prices by 23% this year, pessimistic demand for silver as an industrial input drove the metal to sharply underperform gold in the period. Overcapacity in China’s solar panel industry drove photovoltaic companies to sign up for a government self-discipline program that aims to regulate supply, limiting the outlook of silver demand from its top industry. Pressure was also noted from the threat of a yuan devaluation in accordance with China's looser monetary policy stance, lowering asking prices from one of the world's top exporters.

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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.

06.00.2025 - XAG Commodity was down 0.1%

• The recent downward trend in the silver market is linked to worries about a more aggressive stance from the Federal Reserve and uncertain industrial demand for silver.
• Projections by the Federal Reserve indicating a potential decrease in rate cuts in the upcoming year prompted investors to reduce exposure to non-interest-bearing bullion assets, resulting in a negative impact on silver prices.
• Feeble manufacturing figures coming from China and excessive capacity in the solar panel sector further intensified the pressure on silver prices, constraining the forecast for demand from vital industrial segments.
• Despite previous instances of positive economic prospects and safe-haven interest, the current market shift highlights the influence of specific factors such as Federal Reserve policy forecasts and uncertainties regarding industrial demand on silver prices.

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.

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.