SILVER PRICE FORECAST: XAG/USD CONSOLIDATES BELOW $31 WITH FED POLICY IN FOCUS
- Silver price trades sideways below $31.00 with Fed policy taking center stage.
- Market speculation for the Fed to start reducing interest rates aggressively remains firm.
- US Retail Sales surprisingly rose at a meager growth of 0.1% in August.
Silver price (XAG/USD) stays in tight range below the crucial resistance of $31.00 in Tuesday’s North American session. The white metal consolidates as investors have sidelined, focusing on the Federal Reserve’s (Fed) monetary policy decision, which will be announced on Wednesday.
The Fed is widely anticipated to start reducing interest rates. This would be the first interest rate cut decision by the Fed in more than four years. Investors will keenly focus on the likely Fed rate cut size. According to the CME FedWatch tool, the probability of the Fed reducing interest rates by 50 bps to 4.75%-5.00% in September has increased sharply to 67% from 34% a week ago.
Market speculation for the Fed pivoting to policy normalization aggressively has increased lately after the release of the softer-than-expected United States (US) annual headline Producer Price Index (PPI) data for August, published last week.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.