Investors are driving silver prices higher as they anticipate potential rate cuts from the Federal Reserve. The surge in the precious metal’s value is fueled by a combination of a weakening dollar and expectations of aggressive U.S. monetary policy easing. At 11:37 GMT, the XAG/USD pair is trading at $30.95, marking an increase of $0.23 or +0.75%. Technical Analysis Points to Further Growth The daily chart for silver indicates a strong upward trend, with resistance levels not seen until $31.76. Breaking through this point could lead to a push towards the annual high of $32.52. Support is identified at $30.19 and $29.00, corresponding to previous highs and the 50-day moving average respectively. Focus on Federal Reserve Meeting The upcoming Federal Reserve meeting on Tuesday and Wednesday is under close scrutiny as investors adjust their expectations. The CME Group’s FedWatch tool now suggests a 61% chance of a 50-basis-point cut, a significant change from previous forecasts. The anticipation of monetary easing is boosting the attractiveness of non-yielding assets like silver and gold. Economic Data and Global Central Bank Actions The week ahead will see the release of key economic data, including August retail sales figures and housing market indicators, providing further insight into the Fed’s policy decisions. In addition, the upcoming interest rate decision from the Bank of England adds complexity to the global financial landscape. Factors Supporting Silver Price Increase Several factors are contributing to the upward trend in silver prices: A weakening dollar index, increasing the appeal of silver to foreign investors Growing demand for safe-haven assets amid macroeconomic and geopolitical uncertainties Expectations of lower interest rates, typically benefiting precious metal investments Potential for heightened volatility in the equity markets Market Forecast: Positive Outlook for Silver Taking into account the current market conditions and expert predictions, the short-term forecast for silver is optimistic. Analysts from ANZ forecast gold prices to rise to $2,700 in the near future, possibly reaching $2,900 by the end of 2025. Extrapolating this outlook to silver suggests prices could reach the range of $35.00 to $37.00. However, investors should be cautious of potential challenges, such as the recent slowdown in China’s industrial output and weakening retail sales, which could dampen short-term gains. In summary, the bullish trend in silver prices, fueled by expected Fed rate cuts and global economic uncertainties, suggests a potential for higher prices in the months ahead. Traders are advised to closely monitor the Federal Reserve’s decisions and market reactions to assess the strength of this upward trend.