Silver Price Forecast Drops Near $33.50 on Strong US Dollar
Silver (XAG/USD) prices extended its decline for the third straight session, trading around $33.50 during Friday’s Asian trading hours. The decline in the precious metal Silver could be attributed to the strong performance of the US Dollar (USD) and higher Treasury yields.
On Thursday, data showed that US jobless claims fell significantly in late October, underscoring the strength of the labor market. Additionally, a rise in the S&P PMI further highlighted the strong momentum in the private sector.
The strong US economic data strengthened the likelihood that the Federal Reserve (Fed) will take a less aggressive approach to interest rate cuts than previously expected. According to the CME FedWatch Tool, there is a 97% chance that the Fed will cut interest rates by 25 basis points in November, with no expectations for a larger cut of 50 basis points.
Despite the challenges, Silver as a safe-haven asset may find some positive support due to the uncertainty surrounding the upcoming US presidential election. A recent Reuters/Ipsos poll showed Vice President Kamala Harris with a narrow 46% to 43% lead over former President Donald Trump in a six-day poll that closed on Monday.
Source: FXStreet