Silver Analysis: XAGUSD Hits 3-Week Low

Silver prices have recently fallen to a three-week low, settling at around $27 per ounce. This decline mirrors a similar trend in gold prices, as both metals lose their appeal as safe havens. The reduced geopolitical tensions in the Middle East have significantly diminished the allure of these precious metals as protective investments.

XAGUSD Hits 3-Week Low

Economic Indicators Awaited

Investors are shifting their focus toward key economic reports from the United States. The anticipation is high for the upcoming US Q1 GDP figures and the Fed-preferred PCE price index, both scheduled for release later this week. These reports are crucial as they may provide insights into the future monetary policies of the US central bank.

Mixed Economic Signals

Recent US PMI data, softer than expected, has somewhat alleviated concerns over the economy’s resilience. This development supports arguments in favor of interest rate cuts later this year. Previously, hawkish comments from Federal Reserve officials and high inflation readings had dampened expectations for such cuts. These factors also reduced the attractiveness of non-yielding investments like precious metals.