Silver (XAG) Forecast: Powell’s Testimony & Gold’s Reversal Might Deepen Losses…

Gold surged to an all-time excessive of $2,942.78 earlier than pulling again, elevating considerations that the rally had grow to be overheated. The RSI stays in overbought territory, and the value hole between spot gold and its 50-day shifting common suggests additional draw back is feasible.

Silver usually mirrors gold’s actions, and a deeper correction in gold may speed up promoting in silver. If gold sees a confirmed bearish reversal sample, silver might battle to carry its present assist ranges, particularly if technical merchants comply with gold’s lead and scale back positions.

Powell’s Testimony and Tariff Uncertainty Weigh on Markets

The Federal Reserve’s coverage outlook stays a key driver for valuable metals. Powell’s Congressional testimony can be carefully analyzed for indicators on inflation and charge expectations. With inflation nonetheless working above the Fed’s 2% goal, any indication of extended charge stability may strengthen the greenback and strain silver.

In the meantime, Trump’s 25% tariffs on metal and aluminum imports have reignited considerations over rising prices. If Powell acknowledges the inflationary dangers of tariffs, merchants might shift expectations towards a extra hawkish Fed, which may negatively influence silver and gold. Nonetheless, if Powell strikes a cautious tone, emphasizing endurance, silver may discover renewed assist.