Silver Prices Correct, Investors Monitor US Data
Silver prices (XAG/USD) weakened on Thursday, following a strong rally that took the precious metal to its highest level since 2011. In the US session, silver traded around $40.6 per ounce, slightly down from the previous session. This correction occurred due to profit-taking after a long rally, while global markets began to calm down following this week's bond turmoil. Nevertheless, silver remained on a medium-term bullish path thanks to investor interest in safe-haven assets amid economic uncertainty.
The strengthening of the US dollar (USD) also exerted pressure on silver, given that dollar-denominated commodities tend to be more expensive for holders of other currencies. However, the prospect of an interest rate cut by the Federal Reserve this month continues to provide fundamental support for price movements. Investors are now awaiting the US employment report, which will determine the direction of future monetary policy. If the employment data shows weakness, the likelihood of an interest rate cut increases, potentially boosting silver prices.
In addition to macroeconomic factors, silver also receives strong support from industrial demand, particularly in the renewable energy sector. Demand for solar panels and other technology applications continues to rise, keeping the metal's long-term outlook positive. Analysts believe that as long as the price remains above $40, the bullish outlook remains dominant, with the potential for a retest of the psychological level of $41 in the near future.
Source: Newsmaker.id
