Can Powell’s Speech Trigger a Silver (XAG) Breakout Above $30?

Welcome to Extreme Investor Network, where we provide unique insights and analysis on the latest trends in the stock market, trading, and Wall Street. Today, we are diving into the world of silver trading and exploring how recent market factors are impacting its performance.

The U.S. dollar’s recent decline, marking its fourth consecutive week of losses, has provided a significant boost to silver prices. International buyers have been drawn to silver as the dollar index dropped by 0.62%, making the precious metal more appealing. Additionally, a decrease in U.S. Treasury yields, with the 10-year yield at 3.883% and the 2-year yield at 4.052%, has further supported silver’s price growth.

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From a technical standpoint, silver has faced potential resistance on the weekly chart between $29.04 and $29.50. However, a breakout above this range could lead to a surge in prices, with the psychological $30 level as the initial target. Silver could then potentially aim for even higher levels, including previous tops at $31.76 and $32.52. The recent weekly close above $28.00 signals a strong possibility of silver challenging these levels if supportive market conditions persist.

Despite these positive developments, it is essential to consider the impact of China’s weak industrial demand on silver prices. As the world’s largest consumer of the metal, China’s recent economic data, such as slower industrial output and mixed retail sales, suggest that demand may remain subdued. This lack of strong demand from China, particularly in key sectors like manufacturing and electronics, could potentially limit silver’s gains and hinder its upward momentum.

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Looking ahead, all eyes are on Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium. Traders will be closely monitoring Powell’s remarks for any signals of a potential rate cut, which could further drive silver prices higher in the near future.

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