Silver Prices Drop, Investors Monitor Jackson Hole and Geopolitical Tensions
Silver prices traded lower on Tuesday, hovering below $38 per ounce. Market sentiment was still influenced by the strengthening US dollar, which weighed on the precious metal's appeal, although geopolitical uncertainty continued to support it as a safe-haven asset. Market participants highlighted diplomatic developments related to the Ukraine war, including US President Donald Trump's push to accelerate dialogue with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy. The uncertainty surrounding the outcome of these meetings has kept investors cautious in taking positions.
Fundamentally, silver is being supported by expectations of a Fed interest rate cut in September. Investors await Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Symposium later this week, which could signal the direction of future monetary policy. If Powell confirms the possibility of easing, silver could potentially receive additional support, as lower interest rates typically increase demand for non-yielding assets like precious metals.
Technically, silver is still moving within a consolidation range with support at $37,800 and resistance around $38,500. Limited movement suggests the market is still awaiting major catalysts from the Jackson Hole meeting and geopolitical developments. As long as support levels are maintained, upside opportunities remain open, although a strengthening dollar risks limiting silver's short-term upside.
Source: Newsmaker.id
