Silver Price Forecast: XAG/USD loses traction to near $31.50 ahead of Fed’s Powell speech

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  • Silver price loses ground for the second consecutive day around $31.55 in Monday’s early Asian session. 
  • The upbeat mood weighs on the white metal price. 
  • Chinese stimulus measures and the expectation of a large US rate cut might cap the downside for Silver. 

Silver Price (XAG/USD) attracts some sellers to near $31.55 during the early Asian session on Monday. The improved risk sentiment in global markets triggers some profit-taking in the white metal. Traders will keep an eye on US Federal Reserve (Fed) Chair Jerome Powell's speech later on Monday. 

The upbeat mood could exert some selling pressure on the white metal as traders await the fresh catalysts. The Fed Chair Jerome Powell's speech might offer some hints about the US interest rate outlook for this year. 

The People's Bank of China (PBoC) Governor Pan Gongsheng announced new stimulus measures to revive a flagging property sector and low domestic demand in the country. Also, the PBoC stated the central bank would reduce the amount of reserves banks are required to keep. “Silver is going to continue to rally over the coming quarters because of the consecutive rate cuts and as China’s stimulus could continue for some time,” said Amelia Xiao Fu, head of commodity markets at BOCI.

Additionally, hopes of another large US rate cut provide some support to the Silver price. According to the CME FedWatch Tool, Interest rate futures contracts have priced in a nearly 54% odds of a half-point cut in November, while the possibility of a quarter-point cut stands at 46%. 



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