Last week, the price of silver (XAG/USD) surged by 2.73% to $29.83, driven by a decline in the U.S. dollar and Treasury yields as investors sought the precious metal amidst changing monetary policy expectations. Factors Impacting Silver’s Performance Silver’s upward momentum was primarily fueled by comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium hinting at a potential interest rate cut in September. Powell’s dovish stance resulted in a drop in the dollar index by 1.68% and a decrease in 10-year Treasury yields, boosting silver’s appeal to global investors. Market Expectations and Analysis Traders are pricing in a 67.5% likelihood of a 25 basis point rate reduction in September, and a 32.5% probability of a more significant 50 basis point cut. This anticipation of lower interest rates is enhancing silver’s attractiveness as a safe-haven asset. Technical analysis shows silver trading above its 50-day moving average with key resistance levels at $29.97 and support levels at $29.50 and $28.22. Demand and Outlook An increase in silver imports in India, driven by growing demand from the electronics and solar panel industries, alongside silver’s role as a safe-haven asset, is expected to provide strong support for prices. The short-term outlook for silver remains cautiously optimistic, with market analysts closely monitoring the $30.00 level, which could potentially lead to further price increases. Risks and Conclusion While the outlook for silver remains bullish, traders should be prepared for potential volatility, especially in response to any unexpected hawkish signals from the Fed or stronger economic data. Overall, silver’s short-term trajectory looks positive, supported by Federal Reserve expectations and industrial demand, but close attention should be paid to upcoming economic data and Fed communications for any shifts in market sentiment.