Silver prices have experienced a short-term recovery, with the XAG/USD pair trading near $29.00. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.
The weaker-than-expected US Nonfarm Payrolls data has raised concerns about the US economy’s growth prospects, potentially impacting the Federal Reserve’s decision on interest rate cuts. The market is now pricing in a higher probability of a 50 basis point rate cut in September.
Silver Technical Outlook
Silver prices are trading within a downward-sloping channel, with the potential for a short-term rebound. The 20-day EMA is acting as a key resistance, with potential for further upside if the pair breaks above this level. However, the RSI momentum indicator is currently neutral, suggesting a potential for consolidation.
