Dovish Fed Sentiment Strengthens Silver Buying Momentum
Silver prices rose again in trading on Wednesday morning (August 28th), driven by a weakening US dollar and growing market optimism regarding an interest rate cut by the Federal Reserve. Dovish sentiment from the US central bank has further strengthened demand for safe-haven assets like silver.
At the Jackson Hole Symposium, Federal Reserve Chairman Jerome Powell signaled a more cautious stance on monetary policy, increasing the likelihood of an interest rate cut. The weakening dollar following this statement supported silver prices.
Industrial demand for silver, particularly in renewable energy sectors such as solar panels and electronics, continues to increase. On the other hand, global supply remains limited, creating strong price support.
Several major financial institutions predict that silver prices could reach USD 38–40 in the near future. Despite some caution from some market participants, the medium to long-term trend remains positive.
Technically, silver has broken through its 50-day moving average, indicating solid bullish momentum. Key resistance is in the USD 38.74–39.53 range, while strong support is seen at USD 37.40–37.50.
The Relative Strength Index (RSI) indicator is approaching the overbought area, but the majority of technical indicators are showing Strong Buy signals, supporting the potential for further upside.
With the combination of a weakening US dollar, expectations of looser monetary policy, and stable industrial demand, the outlook for silver remains bullish. If the price can break through key resistance, the psychological target of USD 40 could potentially be reached in the coming weeks.
Silver's positive movement today reflects strong sentiment toward safe-haven assets amid global uncertainty. Investors are advised to monitor movements in the resistance area to capitalize on the potential for further upward movement.
Source: Newsmaker.id
