Silver (XAG) Daily Forecast: Bullish Sentiment Prevails as Prices Surge Above $26.46 Amid Escalating Middle East Tensions

As investors eagerly anticipate the Federal Reserve’s upcoming monetary policy decision, they are also keeping a close eye on key US economic indicators such as the ISM Manufacturing PMI and ADP Employment Change. These factors have the potential to influence market sentiment and impact the prices of precious metals.

At Extreme Investor Network, we understand the importance of staying informed about the latest developments in the stock market. The broad-based US dollar has been on the rise, recently reaching a weekly high of 106.40. This upward momentum has been driven by the Fed’s hawkish stance on interest rates. It is widely expected that the Federal Reserve will keep interest rates unchanged at its May meeting and maintain its hawkish tone.

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Interestingly, the likelihood of Fed easing has decreased, with the probability of a rate cut in June standing at only around 10% and the chances of rate cuts in September dropping below 75%, as reported by the CME FedWatch tool.

Investors will be eagerly awaiting the Press Conference following the Fed meeting for additional insights and guidance. The Fed’s hawkish stance could potentially strengthen the US dollar and limit the upward movement of precious metals prices.

Impact of Geopolitical Tensions on Silver Price

Geopolitical tensions are on the rise as Israeli Prime Minister Benjamin Netanyahu announces plans for Israeli forces to enter Gaza’s southern city of Rafah, despite a ceasefire agreement with Hamas. Meanwhile, UN chief Guterres has expressed frustration with the slow progress on delivering aid to Gaza, urging Israel to prioritize the safety of humanitarian workers and expedite aid delivery to the enclave.

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Furthermore, the International Court of Justice has denied Nicaragua’s request for emergency measures regarding German arms sales to Israel. In the United States, protests against Israel’s actions continue, leading to over 900 arrests in the past 11 days. The death toll from Israeli attacks on Gaza since October 7 has tragically surpassed 34,000 Palestinians killed and nearly 78,000 wounded.

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