Expect Silver Prices to Increase Above $27 Due to Upward Trendline

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U.S. Economic Indicators and Silver Performance: What You Need to Know

Recent reports on the US economy have shown a slowdown in growth and rising inflation, which has had a positive impact on silver as a hedge. The bearish performance of the US dollar has further boosted silver’s gains, as investors anticipate Fed tightening measures. With expectations of higher interest rates to combat inflation, US Treasury yields and the USD remain strong.

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In Q1, US GDP growth fell below expectations at 1.7%, signaling a slower economic expansion. The GDP Price Index also surged to 3.1%, indicating persistent inflation that may keep the Federal Reserve cautious about lowering interest rates. The likelihood of a rate cut in September is currently at 58.2%.

Despite positive figures in Core Personal Consumption Expenditures, Initial Jobless Claims, and Pending Home Sales, traders are cautious and await more signals from the Fed before making significant investment decisions.

The Impact of US Economic Factors on Silver Prices: A Comprehensive Analysis

While economic indicators play a crucial role in determining silver prices, geopolitical tensions can also impact market dynamics. Recent tensions in the Middle East have slightly dampened the safe-haven appeal of silver, putting a cap on its potential gains.

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Military actions between Israel and Iran have escalated tensions in the region, but not to the extent of a full-scale conflict. Both sides are testing each other’s capabilities, showcasing their strength without triggering a major war. Despite these developments, the price of silver has not seen a significant impact.

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