Silver Prices Surge, Eyes Set on Multi-Year High After Reaching Yearly Peak
September 28, 2024Silver Faces Resistance But Uptrend Could Continue
October 1, 2024Last week, silver prices saw a combination of upward momentum and profit-taking, closing at $31.63, up 1.44% from the previous week. Various factors influenced this movement, such as U.S. monetary policy, economic uncertainty in China, and geopolitical tensions. The recent 50-basis point interest rate cut by the Federal Reserve continued to drive silver prices up, as lower rates reduce the opportunity cost of holding non-interest-bearing assets like silver, making it more attractive to investors. Traders are now anticipating the possibility of another rate cut at the Fed’s upcoming meeting in November. This dovish sentiment has helped counterbalance some of the pressure from the strengthening U.S. dollar, which typically exerts downward pressure on silver prices. Despite weak economic indicators from China, including poor retail sales and falling property prices, stimulus efforts by the People’s Bank of China have provided temporary support to silver prices. The surge in gold prices, driven by safe-haven demand amid global economic uncertainties and geopolitical tensions, also benefited silver as investors sought exposure to precious metals. Looking ahead, silver prices are expected to remain sensitive to U.S. monetary policy and China’s economic situation. The metal may see further gains if the Federal Reserve hints at additional rate cuts, but the market’s recent surge above its 50-day moving average suggests a potential for a short-term correction. Profit-taking and signs of U.S. economic strength could limit future gains, so traders should be mindful of volatility in the coming weeks.