Predicting Silver Prices: Will Silver Continue to Drop with the current Risk-On Market?

At Extreme Investor Network, we understand the importance of staying informed on economic indicators and their impact on the stock market. This week, we saw how the U.S. Non-Farm Payrolls report influenced silver prices, with job growth falling short of expectations. While this initially led to a rise in silver’s appeal as a safe haven, broader economic signals quickly reversed those gains.

The Federal Reserve also made headlines last week by holding interest rates steady, signaling a cautious approach to economic growth and inflation. Despite the potential benefits of rate cuts for non-yielding assets like silver, the market’s focus on economic recovery and higher returns from riskier investments overshadowed any positive impact on silver prices.

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Market sentiment has played a significant role in silver’s recent performance, with the metal currently down 12.72% from its recent peak. The preference for risk over safety has driven silver prices lower, despite geopolitical issues and central bank acquisitions driving prices higher last month.

Looking ahead, the immediate support level for silver is around $25.00 per ounce. The trend of silver prices will likely depend on the Federal Reserve’s next moves in response to economic indicators and inflation pressures. If the Fed adopts a more accommodative monetary stance, silver could see increased demand as a safe investment. However, a continued ‘risk-on’ sentiment in financial markets could keep silver under pressure, potentially testing or breaking below the key $25.00 support level.

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