Silver price at the close of the session on August 30th: Decline as market adjusts interest rate expectations

Domestic silver prices

World silver price

As of 6:20 PM, world silver prices are listed around the threshold of 66.25 USD/ounce.

Silver price forecast

World silver prices fell sharply in the last trading session of the week as the market adjusted expectations about the interest rate policy of the US Federal Reserve (Fed).

Fed Chairman Kevin Warsh's tough statement at the Jackson Hole conference caused US bond yields and the USD to simultaneously increase, thereby putting direct pressure on precious metals.

Silver is inherently an unprofitable asset, so it is often disadvantaged when yields increase. Spot silver prices at times fell more than 4%, down to around 66.21 USD/ounce. Notably, the decline occurred after silver could not maintain the 70 USD/ounce price range, showing that selling pressure is increasing significantly in high resistance areas.

Technical developments are also becoming less positive. Silver prices have successively penetrated the support zones of 69.96 USD, 69.50 USD and 67.69 USD/ounce. In the short term, 66 USD/ounce is considered an important support zone. If this level is broken, silver prices may continue to fall back to 65.66 USD and deeper to 64.20 USD/ounce.

In the opposite direction, to improve the outlook, silver prices need to soon regain the 67.69 USD/ounce zone. If this threshold is exceeded, the precious metal may head up to 69.50 USD and 69.96 USD/ounce. Regaining the 70 USD zone will be a more positive signal showing that the current sharp decline may just be a correction.

In the near future, the developments of silver are likely to continue to depend heavily on the Fed's interest rate expectations, the USD and US bond yields. The market's increased betting on a tougher monetary policy is reducing the attractiveness of silver in the short term.

However, it is not yet possible to hastily conclude that the medium-term uptrend of silver has been completely broken. If pressure from the USD and yields cool down, while safe-haven demand and expectations of monetary policy easing return, silver can still recover. Because silver often fluctuates more strongly than gold, ups and downs in the near future may occur with a large amplitude.

Therefore, in the short term, the silver price outlook is assessed cautiously, especially when the support zone of 66 USD/ounce is facing pressure. The market needs more signals to determine whether this is just a correction after a period of strong increase or the beginning of a deeper correction.