Silver Price Forecast: XAG/USD bulls reclaimed the $19.00 ahead of Jackshon Hole event
|- The silver price climbed 0.70% amidst a downbeat market sentiment, which weighed on the greenback.
- Higher US Treasury yields put a lid on XAG/USD prices.
- Market players’ focus turns to Wednesday’s Durable Good Orders, alongside Fed speaking on Friday, led by Chair Powell.
Silver price erases Monday’s losses and is higher as Wall Street’s ended the day with minimal losses, amidst a dismal sentiment propelled by US economic data dropping to contractionary readings. Also, traders are preparing for an expected hawkish speech by Federal Reserve Chairman Jerome Powell in Jackson Hole, which bolstered silver’s appeal, to the detriment of the US dollar At the time of writing, XAG/USD is trading at $19.11 up by 0.70%.
US equities finished the day in the red. Earlier in the New York session, S&P Global reported US PMIs, for August, with the Services and Composite indices plunging to contractionary territory, each with readings at 44.1 and 47, respectively. Contrarily, the Manufacturing Index downtick to 51.3 but remained in expansionary territory, despite missing estimates.
In the US data release, the US dollar weakened across the board, with the US Dollar Index sliding from around 109.000 to 108.200. On the contrary, US T-bond yields rose, led by the 10-year US Treasury yield, up by four bps, sitting at 3.057%, a headwind for silver prices.
Additionally, US housing data portrayed that New Home Sales dipped to their slowest pace since 2016, dropping for the sixth consecutive month, as the market continues to deteriorate as the Federal Reserve tightens monetary policy. New Home Sales dropped by 0.51M vs. estimations of 0.575M.
What to watch
The US economic docket will feature Durable Good Orders for July, alongside Housing Data, illustrating that the US economy is slowing down on Wednesday.
Silver Key Technical Levels
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