Silver Cautionary Ahead of Powell Speech
Silver trended lower in the US session after a sharp rally early Tuesday. In the Asian session, XAG/USD briefly touched a new intraday record at $53.60 before profit-taking, then stabilized lower as the US dollar strengthened ahead of Fed Chair Jerome Powell's speech. Market participants believe the rapid rally makes prices sensitive to short-term corrections, while they await clues about the next direction in interest rates.
Risk-off sentiment remains high amid a new escalation in trade tensions: the US and China have begun imposing reciprocal port fees, which could potentially raise global logistics costs and trigger inflation concerns. Hedging flows briefly lifted the precious metal, but a stronger USD curbed silver's gains as the market gauges whether Powell will confirm room for future interest rate cuts. He is scheduled to speak at the NABE conference at 12:20 PM ET.
Looking ahead, silver volatility is likely to remain high due to a combination of macro factors: trade tensions, the Fed's policy direction, and limited visibility of official data due to the US government shutdown, which delayed the publication of key indicators. If Powell takes a dovish tone and the dollar weakens, silver could retest its peak levels. Conversely, a hawkish tone could deepen consolidation in the next session.
Source: Newsmaker.id
