- Silver is under pressure in consolidation at trendline support.
- All eyes are now moving towards US economic data as the Fed gets digested.
The price of silver is off a tough n the early Asian session by some 0.18% as it continues to consolidate vs the greenback this week.
XAG/USD is currently trading at $25.83 and has travelled on the day so far between a low of $25.82 and $25.91.
Meanwhile, the price of silver was higher by some 0.4% by the closing bell on Wall Street with XAG/USD rising from a low of $25.76 to a high of $26.29. Base metals also rose sharply as the market reacted to the release of lower than expected volumes from China’s strategic reserve.
Additionally, the greenback pared gains following weak June services PMI that fell sharply to 64.8, while sales of new US homes also dropped unexpectedly.
However, Federal Reserve officials warned that tapering of assets purchased could be in the next few months.
Dallas Fed President Robert Kaplan said he’s expecting rates will start to rise in 2022 as the economic recovery gathers pace.
Atlanta Fed President Raphael Bostic said with growth surging to an estimated 7% this year and inflation well above the Fed’s 2% target, he now expects interest rates will need to rise in late 2022.
Fed Governor Michelle Bowman said that while they largely agree recent price increases will prove temporary, they also feel it may take longer than anticipated for them to fade.
These comments followed Fed Chair Jerome Powell’s comments from the prior day where he played down rising price pressures.
However, precious metals continue to underperform which still suggests that the bar is low for further weakness in prices.
