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Silver Price Forecast: XAG/USD reclaims the $19.00 mark, gaining 3.86% in the week

  • Silver price is erasing Thursdays losses up by almost 2% on Friday.
  • Septembers US economic data justifies the Feds 75 bps rate hike.
  • THE UNITED STATES Consumer Sentiment improved, showing People in america resilience despite a worsening economic outlook.

The silver price climbed because the Wall Street close looms, gaining 1.85% throughout the day, the effect of a soft US dollar, while US Treasury yields stalled. Positive US economic data relieve investors worries concerning the Federal Reserve hiking 100 bps rather than 75 within the next weeks meeting, while a risk-off impulse keeps global equities in debt. During writing, the XAG/USD is trading at $19.54, back above the $19.00 mark.

XAG/USD climbs because of US T-bond yields unchanged, and a soft US dollar

Earlier, US economic data revealed that US Consumer Sentiment continued improving, despite increasing fears that the united states central bank tightening would spark a US recession. The reading ticked to 59.5, less than estimates but above the last months reading of 58.6.

Following the marked improvement in sentiment in August, consumers showed signs of uncertainty on the trajectory of the economy. Inflation expectations in exactly the same report for 1-year dropped to 4.6% vs. 4,8% in August, Joanne Hsu, director of the UoM Survey, said.

Meanwhile, the greenback is fluctuating through the session, going to finish unchanged. THE UNITED STATES Dollar Index is down 0.02%, at 109.718, as the US 10-year benchmark note rate reaches 3.449%, almost flat.

These earlier mentioned factors bolstered appetite for the non-yielding metal, gaining traction, and extending its weekly gains to 3.86%.

Apart from this, US data reported through the current month is giving the green light to Fed officials to improve rates by of a percent to the 3-3.25% range. Despite the fact that there’s been speculation that the Fed might go 100 bps, analysts at Societe Generale think otherwise.

The FOMC meets on the 21 September, and we expect a third 75-bp rate hike. There’s been some talk of 100bp, but Fed officials pushed back on that option earlier and we usually do not expect them to go on it now. Long run, the extension of the SEP through 2025 offers a lot more insight to their business cycle views, analysts at Societe Generale wrote.

Silver (XAG/USD) Key Technical Levels

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