After Powell's Euphoria, Silver Seeks New Catalyst
Silver prices (XAG/USD) fell slightly to $38.7 in European trading on Monday, after Friday's rally faded as the US dollar slowly recovered from its decline following Fed Chairman Jerome Powell's dovish signals. More cautious risk appetite and unchanged US Treasury yields have kept silver buyers on hold. However, expectations of a Fed rate cut next month continue to maintain a price floor, as the opportunity cost of holding the precious metal is decreasing.
Fundamentally, the market is awaiting the release of US durable goods orders, regional manufacturing indices, and PCE inflation data later this week to validate the Fed's policy direction. In Asia, signs of recovering industrial activity and demand in China's photovoltaic sector are providing moderate support for silver as an industrial metal. Net inflows into silver-based ETFs last week also boosted sentiment, although speculative positions on the Comex remain vulnerable to profit-taking.
Technically, the $38.20–$38.50 range represents an initial hurdle; A clear breakout opens up room towards $39.00 and then $39.60. On the downside, immediate support lies at $37.30, before $36.80. The short-term outlook will be determined by the dollar's direction: a sustained rebound risks pressuring XAG/USD, while a weaker dollar and falling US real yields could potentially revive the uptrend towards the $39 area, with volatility remaining high ahead of the data.
Source: Newsmaker.id
