Silver Prices Forecast: XAG/USD Tumbles as Dollar Strengthens Amid Fed Uncertainty

NEW YORK (October 4) Silver (XAG/USD) is facing headwinds, languishing near a seven-month trough at $21.07 per ounce. Traders are contending with a buffet of influences, most notably a resurgent U.S. dollar and fluctuating Federal Reserve sentiments. Key levels to watch are resistance at $22.20 and support at $20.61, failure of which could send the metal tumbling to $19.80.

Jobs and Bonds Turn the Tide

The robust U.S. labor market, as evidenced by the surprising job openings in August, has further emboldened the dollar, putting downward pressure on the precious metal. Adding to silver’s woes are the 16-year highs in U.S. 10-year bond yields, diminishing the allure of non-yielding assets like silver.

is facing headwinds, languishing near a seven-month trough at $21.07 per ounce. Traders are contending with a buffet of influences, most notably a resurgent U.S. dollar and fluctuating Federal Reserve sentiments. Key levels to watch are resistance at $22.20 and support at $20.61, failure of which could send the metal tumbling to $19.80.

Jobs and Bonds Turn the Tide

The robust U.S. labor market, as evidenced by the surprising job openings in August, has further emboldened the dollar, putting downward pressure on the precious metal. Adding to silver’s woes are the 16-year highs in U.S. 10-year bond yields, diminishing the allure of non-yielding assets like silver.

FXEmpire