Silver Price Rises Ahead of Key US Economic Data
Silver prices continued to rise at the close of the session on August 26th, both in domestic and world markets. The precious metal's price is approaching a crucial resistance zone of $70 per ounce, which will determine its short-term trend.
The silver market is supported by expectations that US monetary policy may become less tight, leading to lower interest rates. This environment favors non-performing assets like gold and silver. However, after a strong increase, prices are under profit-taking pressure as investors await important US economic data, including the July PCE inflation report and the statement of US Federal Reserve Chairman Kevin Warsh at the Jackson Hole conference.
Recent signals indicate that US inflation is cooling down, while consumer confidence and new home sales are weakening. This increases expectations that the Fed may maintain the current interest rate level or ease in the near future. Silver receives support from industrial demand, particularly in renewable energy, electronics, and technology.
Technically, silver prices are approaching the resistance zone of $69.59-$70.38 per ounce. If this zone is surpassed, the upward trend may expand with a target around $72 per ounce. Conversely, if selling pressure increases, support zones are defined at $68.67 and $68.10 per ounce.
The silver price's behavior in the near future will depend on US inflation data and policy messages from the Fed. If the Fed sends softer signals, a weaker USD may create more momentum for silver. Conversely, signals showing interest rates remaining at a higher level for longer may put pressure on the precious metal to adjust.