Silver

Bond traders are stepping back into the market on bets that the Fed will deliver a dovish hold today, which weighed on the US dollar and supported gold, silver and copper ahead of today’s FOMC meeting.

This week’s marquee economic release, the US CPI report, looms large as a potential breakout catalyst for Silver and Gold tomorrow.

Gold and silver have been strongly correlated with copper futures over the past fortnight. The negative correlation with the US dollar index, US two-year Treasury yields and Fed funds futures curve has also strengthened. Combined, it suggests base and precious metals are once again being driven by the US interest rate outlook.

This week, it is all about US inflation, which puts the dollar and dollar-denominated assets like gold and silver in sharp focus. Despite their weaker start to the week, gold and silver may have long ways to go on the upside, I reckon. Our gold and silver forecast both remain positive.

Key risk events this week include Jerome Powell’s testimony to the Senate Banking Committee on Tuesday and a CPI report. Should Powell strike a dovish tone and CPI data come in soft, gold, silver and copper could be poised to rally.

Today’s data dump includes the ADP private payrolls, unemployment claims, factory orders and ISM services PMI. Friday will see the release of the June payrolls data. Judging by a weaker US dollar (outside of the USD/JPY pair), it looks like investors are expecting this week’s data to be overall on the weaker side. In any case, our bullish gold and silver forecast remain unchanged.

For silver, a significant breakout earlier this year could lead to a surge to $35. However, in the short term, we need to see a bullish reversal before aiming for these longer-term targets. Thus, my gold and silver forecast remains bullish despite recent challenges.

Election uncertainty in France and upcoming key US data are some of the risk factors keeping a lid on gold (XAUUSD) and silver (XAGUSD) prices. Still, both of our gold and silver forecast remains bullish. Their ongoing consolidation phase should not be mistaken for a sign of weakness.

Crude Oil and Silver Analysis: Oil is on track towards yearly lows while silver dives back into the 29 territory

Investors have so far resisted the temptations of picking up silver’s dip back below the $30 handle, following the metal’s big breakout in the last couple of months. However, the long-term silver outlook remains bullish, and I am expecting the short-term selling pressure to ease soon.

After hovering on key support levels, Oil drops and Silver rebounds

It’s been a wild ride for commodities in May with many names who started the month in beast mode ending it with a whimper. Some have broken down technically while others are threatening to do so. Ahead of inflation data from the United States, Eurozone and Japan on Friday, we look at messaging from the charts for gold, silver and copper.

Silver Outlook: The silver bull run has been in the headlines, but since when?

Gold and copper have made mild attempt to recoup last week's losses, which puts us on alert for a potential 'dead cat bounce'. Whilst silver’s rebound has been much more impressive, resistance looms.

Metals markets finally succumbed to the higher rates, stronger US dollar environment on Wednesday, with vulnerabilities evident earlier in the week finally materialising. But the underlying factors behind the rally have not gone away, making us inclined to continue buying dips.

Gold’s outlook remains constructive heading into resistance in the $2460-2500 zone, and Silver is in an even more bullish technical position, with a bullish bias in place above $30.

Our gold and silver forecast remains positive and reckon new records could be on the way for the former and fresh 2024 gains for the latter, following last week's big silver rally. Precious metals have found additional support from a weaker US dollar.