Silver Price Forecast: XAG/USD waver around $19.00 on subdued trading, ahead of Jackson Hole
|- Silver prices remain choppy trading as investors prepare for Powell’s speech at Jackson Hole.
- XAG/USD benefitted from thin liquidity conditions and a soft greenback which, despite gaining, traded off the week’s highs.
- Fed’s Kashkari: Inflation is very high, and the Fed will relax until further evidence shows that inflation is reaching 2%.
Silver prices remain subdued on late Wednesday after Wall Street closed, with US equities recording minimal gains on a day characterized by thin market volatility as traders brace for Fed Chair Jerome Powell’s speech on Jackson Hole. At the time of writing, XAG/USD is trading at $19.15 a troy ounce, up by 0.13%.
On Wednesday, XAG/USD opened near the day’s high at around $19.10 before diving toward the daily lows at $18.93. However, buyers lifted white metal prices, reclaiming the $19.00 figure, and hitting a daily high at $19.22, before settling at current price levels.
Before the New York Stock Exchange (NYSE) opened, US Durable Good Orders for July unexpectedly jumped, as shown by data released by the US Commerce Department. Headline Orders were unchanged on a monthly reading while excluding defense and aircraft; so-called core Durable Good Orders rose by 0.4%, higher than estimates at 0.3%.
Later, US Pending Home Sales fell for the sixth consecutive month, collapsing by 19.9% YoY, less than 22% contraction, while on a month-over-month, it fell -1%, vs. -4% forecasts.
The US Dollar Index, a gauge of the greenback’s value against a basket of six currencies, extended its gains by 0.09%, at 108.600, while the 10-year US Treasury note rate at 3.109%, gaining six bps.
On Tuesday, Minnesota Fed President Neil Kashkari said that inflation is very high, and it is the Fed’s job to bring it down. He emphasized the need to tighten monetary policy and added that the Fed could only relax on rate increases when they see compelling evidence of inflation heading toward 2%.
What to watch
The US economic docket will feature the GDP growth rate for the second quarter, Initial Jobless Claims, and the Kansas City Fed Manufacturing Index for August.
Silver (XAG/USD) Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.