Silver Price Forecast: XAG/USD falls to near $31.50 amid hawkish Fedspeak
- Silver price depreciates as hawkish remarks from Fed officials suggest higher rates for longer.
- The higher US Dollar is dampening the demand for Silver.
- Traders await the FOMC Minutes to gain further clues about the Fed's policy stance.
Silver price continues to lose ground after retreating from the highest level of $32.51, a level not seen since December 2012. The Silver price trades around $31.80 per troy ounce during the European hours on Wednesday. Investors assess recent remarks from Federal Reserve officials, with several policymakers advocating for continued policy caution.
Federal Reserve Bank of Boston President Susan Collins highlighted on Tuesday that progress toward interest rate adjustment will require more time, emphasizing patience as the appropriate policy for the Fed. Additionally, Federal Reserve Governor Christopher Waller mentioned that he would need to observe several more months of positive inflation data before feeling comfortable supporting a policy easing, per Reuters.
The US Dollar (USD) appreciated ahead of the release of the Minutes from the Federal Open Market Committee (FOMC) meeting held on May 1, which are expected to be published on Wednesday. The higher Greenback dampens the demand for the Silver asset.
The downside of the grey metal is capped by renewed US-China trade tensions. On Monday, the Chinese Commerce Ministry announced a prohibition on General Atomics Aeronautical Systems, a US company, from engaging in import and export activities related to China. This decision comes amid ongoing trade tensions between the United States and China.
Additionally, China’s measures to stabilize its property sector are providing some boost to safe-haven assets like Silver. The Chinese Commerce Ministry announced a prohibition on General Atomics Aeronautical Systems, a US company, from engaging in import and export activities related to China. This decision comes amid ongoing trade tensions between the United States and China.