Silver (XAG/USD) has recently shown a notable decline, despite a weakening U.S. dollar and a less hawkish stance from the Federal Reserve.

This past week, Silver was trading around $26.6155 and briefly dipped to an intra-day low of $26.5905. Typically, Silver and other safe-haven assets see declines when risk appetite increases among investors, as was the case this past week due to positive shifts in market sentiment and expectations surrounding U.S. monetary policy.

• Silver trades near $26.59, reflecting subdued safe-haven demand amid market optimism.
• U.S. Dollar weakens as Fed signals potential for future rate cuts.
• Upcoming economic indicators and Fed decisions critical for Silver’s price trajectory.

The U.S. dollar reached a three-week low, influenced largely by the Federal Reserve’s indication that while immediate rate cuts are not on the agenda, the possibility of future reductions remains. This dovish signal, paired with a positive outlook in global equity markets, has somewhat cushioned silver from more substantial losses. Traders, meanwhile, have adopted a cautious approach, holding off on major bets until the release of the U.S. Nonfarm Payrolls (NFP) report, a critical indicator not only for employment trends but also for potential shifts in the Federal Reserve’s interest rate strategy.

Fed Chair Jerome Powell’s recent comments confirmed that the central bank is not planning any further rate hikes and is open to rate cuts down the line if necessary. This approach, aimed at sustaining economic expansion without exacerbating inflation, has led to a decrease in demand for safe-haven assets like silver as investors turn to more risk-oriented assets.

Conclusion: Silver’s near-term prospects remain tethered to macroeconomic developments and policy shifts, suggesting a cautious outlook.

Silver Technical Outlook