Managing Recent Silver Peaks Amid Economic Uncertainty
Weaker economic indicators and the expectation that the U.S. Federal Reserve will delay future rate increases have fueled investor sentiment, driving silver (XAG/USD) prices to a four-week high. With Treasury yields hitting a three-week low and consumer confidence falling, silver’s non-interest yielding allure is currently in the spotlight.

Dollar Yields and Treasury Yields

The price trajectory of silver is intertwined with the U.S. dollar and Treasury yields. As both metrics have decreased, silver’s outlook has become more favorable. The forthcoming GDP and non-farm payroll reports could temper silver’s recent gains, so investors should keep a close watch on them.

Indicators of the economy and market sentiment
Recent data reveals substantial declines in job openings and consumer confidence, two factors that typically increase silver’s market value. Moreover, due to the uncertainty surrounding the Fed’s forthcoming monetary policy actions, the outlook for silver investors has shifted to one of cautious optimism.

Short-Term Prognosis
The silver market’s sentiment remains cautiously bullish. The personal consumption expenditures price index and the non-farm payrolls report, both of which are due this week and have the potential to alter interest rate decisions, warrant heightened vigilance on the part of investors. Despite economic unpredictability, silver’s appeal appears to be growing, but the market can change swiftly in response to forthcoming economic reports.

The current 4-hour price of 24.60 is significantly above the 200-4H and 50-4H moving averages of $23.87 and 23.80, indicating a bullish trend. The 14-4H RSI reading of 68.45 trends toward overbought conditions, but upside potential remains.

On the support and resistance front, the current price is above the 23.850 to 23.600 main support range. It is nearing the primary area of resistance between 25.00 and 25.26, confirming bullish momentum. Using these indicators, we judge the current Silver market sentiment to be favorable.

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