Welcome to Extreme Investor Network, where we provide you with unique insights and valuable information to help you navigate the stock market, trading, and all things Wall Street. Today, we’re looking at the latest probabilities of interest rate cuts and how they could impact the silver market.
According to recent data, there is a 64% probability of a 25 basis point cut in September, with a 36% chance of a larger 50 basis point cut. It is widely expected that at least one cut will happen before the end of the year. Lower interest rates typically boost non-yielding assets like silver, which could drive increased investment demand in the metal.
Looking at the market forecast, silver seems to be gearing up for a bullish move in the short term. A supportive technical setup combined with fundamental tailwinds from expected rate cuts create a favorable environment for silver prices. Traders should keep an eye out for a break above $30, which could lead to a rally towards the next major resistance level at $31.76. However, caution is advised as the market approaches these key levels, as a failure to break $30 could result in consolidation or a pullback towards the 50-day moving average.
Key factors that traders should monitor include upcoming economic data, particularly the August jobs report, as it could influence the Fed’s rate decision. Industrial demand indicators will also be crucial, as they have historically been a limiting factor for silver compared to gold.
In conclusion, silver traders should be prepared for increased volatility as the market tests the $30 level, with a bias towards the upside given the current macroeconomic backdrop and technical setup. Stay tuned to Extreme Investor Network for more expert analysis and insights to help you make informed investment decisions.