Is Silver Just Consolidating or Ready for the Next Surge?
The price of silver (XAG/USD) is now hovering around $50.80 per ounce after previously slipping below the psychological $50.00 level and hitting its lowest level in more than a week. This recovery comes amidst a global market situation that remains uncertain: global stock markets are under pressure, particularly the technology sector, which is considered "overpriced," while market participants are beginning to reduce expectations of aggressive interest rate cuts by the Fed.
Fundamentally, silver benefits from two factors. As a precious metal, it is often viewed as a safe haven when risk sentiment weakens and investors begin to reduce exposure to riskier stocks. On the other hand, as an industrial metal, silver remains supported by long-term structural demand, particularly from green energy sectors such as solar panels, electric vehicles, and electronics. This combination of stock market concerns and the long-term demand story helps to withstand deeper selling pressure.
Looking ahead, the market's primary focus remains on key US economic data and policy signals from the Fed. Employment data, jobless claims, and comments from central bank officials will significantly influence interest rate expectations and the strength of the US dollar. If data shows economic weakness and the likelihood of further interest rate cuts increases, silver could potentially receive an additional boost. However, if the dollar strengthens again and the Fed sounds more hawkish, silver's upside potential could be limited, making it more likely to be used as a hedge and portfolio diversifier ahead of important data releases. (az)
Source: Newsmaker.id
