Silver prices are currently slightly lower, nearing a peak reached earlier this week. This decline comes after the release of minutes from the Federal Reserve meeting, which indicated a high likelihood of an interest rate reduction at the September meeting. Decreased interest rates typically lead to higher silver prices by lowering the cost of holding assets that do not yield interest. As of 11:34 GMT, the XAG/USD pair is being traded at $29.52, showing a decrease of $0.08 or -0.28%. Reaction to Fed Minutes Investors appeared to have anticipated this development, as they had been considering the potential move for some time. While the silver market is currently above the 50-day moving average support, it requires a catalyst to surpass the $29.50 pivot point. This technical analysis indicates the possibility of further increases if more positive factors surface. Impact of Treasury Yields and Dollar Performance On Thursday, U.S. Treasury yields rose, with the 10-year yield climbing over 2 basis points to 3.799%. This increase followed the dovish Fed minutes and a significant downward revision in preliminary payroll data. Concurrently, the U.S. dollar remained close to yearly lows against currencies like the euro and sterling. A weaker dollar often boosts silver prices by making it more attractive to international buyers. Fed’s Position and Market Expectations The minutes from the Federal Reserve’s July meeting showed that most participants favored policy easing in the next meeting if economic data progressed as anticipated. This sentiment has strengthened market predictions, with traders currently estimating a 66% likelihood of a 25-basis-point rate cut in September. The expectation of lower interest rates tends to elevate silver’s appeal as an alternate investment. Future Economic Indicators Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday is now eagerly anticipated. Additionally, key data releases such as weekly initial jobless claims, August’s manufacturing and services PMI, and July’s existing home sales figures will offer insight into economic conditions. These indicators can impact silver prices by influencing perceptions of economic growth and monetary policy. Market Projection The immediate outlook for silver seems cautiously optimistic. The combination of a potentially accommodating stance from the Federal Reserve, a weaker U.S. dollar, and ongoing economic uncertainties may support precious metal prices. Nonetheless, traders should be vigilant for unexpected statements in Powell’s speech or sudden shifts in economic data that could swiftly alter market sentiment and silver prices. Technical Examination Daily Silver (XAG/USD) While XAG/USD is currently on a slight decline, it is maintaining strength by holding above the 50-day moving average at $29.22 and hovering around the $29.50 pivot. Establishing a support base above this pivot could trigger a rally towards targets at $31.76 to $32.52. Alternatively, a failure to maintain the 50-day MA might lead to a drop to $28.22. If an uptrend is confirmed, buyers are likely to re-enter the market at this price level.