Select Language

Silver Price Forecast: XAG/USD nosedives to near $31.00 on Trump's victory, Fed policy in focus

Breaking news

Silver Price Forecast: XAG/USD nosedives to near $31.00 on Trump's victory, Fed policy in focus

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.11.06 23:11
Silver Price Forecast: XAG/USD nosedives to near $31.00 on Trump's victory, Fed policy in focus

update 2024.11.06 23:11

  • Silver price plunges below $31.00 as Trump's victory dampens its safe-haven appeal.
  • Higher US Treasury yields and the US Dollar have weighed on the Silver price.
  • Investors will focus on the Fed's commentary to get cues about the impact of Trump's victory on the interest rate path.

Silver price (XAG/USD) faces a bloodbath on a landslide victory of Republican candidate Donald Trump, is down almost 5% and falls below $31.00 in Wednesday's North American session. The white metal weakens as investors expect that Trump would effort for a truce between Russia and Ukraine. A ceasefire of more than two Russia-Ukraine wars will improve global market sentiment.

Bloodshed between Russia and Ukraine was one of the reasons behind Silver's rally, from a low of $18.00 to a more than decade high of around $35.00 in the past two years. Historically, the scenario of geopolitical tensions bodes well for precious metals, such as Silver, as it improves its safe-haven appeal.

Meanwhile, a sheer strength in the US Dollar (USD) and bond yields has also weighed on the Silver. The US Dollar Index (DXY), which gauges Greenback's value against six major currencies, posts a fresh four-month high of 105.30. 10-year US Treasury yields soar to near 4.45%. Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Silver.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Euro.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   1.96% 1.26% 1.82% 0.78% 1.25% 0.93% 1.45%
EUR -1.96%   -0.67% -0.13% -1.15% -0.69% -1.02% -0.50%
GBP -1.26% 0.67%   0.54% -0.47% -0.02% -0.35% 0.18%
JPY -1.82% 0.13% -0.54%   -1.01% -0.56% -0.90% -0.36%
CAD -0.78% 1.15% 0.47% 1.01%   0.46% 0.13% 0.65%
AUD -1.25% 0.69% 0.02% 0.56% -0.46%   -0.33% 0.20%
NZD -0.93% 1.02% 0.35% 0.90% -0.13% 0.33%   0.53%
CHF -1.45% 0.50% -0.18% 0.36% -0.65% -0.20% -0.53%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Going forward, investors will focus on the Federal Reserve's (Fed) interest rate decision, which will be announced on Thursday. The Fed is widely anticipated to cut interest rates by 25 basis points (bps) to 4.50%-4.75%, according to the CME FedWatch tool. Investors will focus on the Fed's comments on the impact of Trump's victory on the inflation outlook and the interest rate guidance.

Trump vowed to lower corporate taxes and hike import tariffs by 10% universally, except China which is expected to face tariffs even higher.

Silver technical analysis

Silver price extends its downside below $31.00 after sliding below the horizontal support plotted from the May 21 high of $32.50. The near-term trend of the Silver price has turned bearish as it has dropped below the 50-day Exponential Moving Average (EMA), which trades around $31.60.

The asset could find support near the upward-sloping trendline around $29.00, plotted from the February 28 low of $22.30.

The 14-day Relative Strength Index (RSI) dives to near 40.00. Should RSI (14) fall below 40.00, a bearish momentum will be triggered.

Silver daily chart

 


Date

Created

 : 2024.11.06

Update

Last updated

 : 2024.11.06

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

UK Retail Sales decline 0.7% on a monthly basis in October vs. -0.3% expected

The UK's Office for National Statistics (ONS) reported on Friday that Retail Sales declined 0.7% on a monthly basis in October.
New
update2024.11.22 16:06

Forex Today: US Dollar climbs higher as focus shifts to PMI data

Here is what you need to know on Friday, November 22: Following a quiet European session, the US Dollar (USD) regathered its strength in the second half of the day on Thursday and continued to push higher early Friday, reaching its highest level since October 2023 above 107.00.
New
update2024.11.22 15:50

AUD/JPY falls below 100.50 as the likelihood of a BoJ rate hike next month revives

AUD/JPY continues its decline, nearing 100.30 during the Asian trading hours on Friday.
New
update2024.11.22 15:07

USD/CAD Price Forecast: Bulls have the upper hand while above mid-1.3900s pivotal support

The USD/CAD pair edges higher during the Asian session on Friday, albeit it lacks follow-through buying and remains below the 1.4000 psychological mark amid mixed cues.
New
update2024.11.22 14:38

USD/CHF weakens to near 0.8850 ahead of US PMI data

The USD/CHF pair trades with mild losses around 0.8860 during the early European session on Friday.
New
update2024.11.22 14:32

EUR/USD depreciates to yearly lows near 1.0450, awaits PMIs from both nations

EUR/USD remains on a downward trend for the third consecutive session, hovering around 1.0470 during the Asian trading hours on Friday.
New
update2024.11.22 13:44

EUR/JPY bounces off multi-month low, down a little around 161.70 ahead of Eurozone PMIs

The EUR/JPY cross attracts some follow-through selling for the second straight day and drops to its lowest level since October 4 during the Asian session on Friday, albeit it managed to rebound a few pips thereafter.
New
update2024.11.22 13:37

India Gold price today: Gold rises, according to FXStreet data

Gold prices rose in India on Friday, according to data compiled by FXStreet.
New
update2024.11.22 13:37

Gold price advances to near two-week high, eyes $2,700 on geopolitical tensions

Gold price (XAU/USD) prolongs its uptrend for the fifth consecutive day on Friday and climbs to a nearly two-week top, around the $2,690-2,691 area during the Asian session.
New
update2024.11.22 13:12

GBP/USD falls to six-month lows near 1.2550 ahead of PMI figures from both economies

GBP/USD extends its losses for the third successive session, trading around 1.2580 during the Asian hours on Friday.
New
update2024.11.22 13:05

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel