- Silver price is erasing Thursday’s losses up by almost 2% on Friday.
- September’s US economic data justifies the Fed’s 75 bps rate hike.
- The US Consumer Sentiment improved, showing US citizens resilience despite a worsening economic outlook.
The silver price climbed as the Wall Street close looms, gaining 1.85% during the day, caused by a soft US dollar, while US Treasury yields stalled. Positive US economic data relieve investors’ worries about the Federal Reserve hiking 100 bps instead of 75 in the next week’s meeting, while a risk-off impulse keeps global equities in the red. At the time of writing, the XAG/USD is trading at $19.54, back above the $19.00 mark.
XAG/USD climbs due to US T-bond yields unchanged, and a soft US dollar
Earlier, US economic data revealed that US Consumer Sentiment continued improving, despite increasing fears that the US central bank tightening would spark a US recession. The reading ticked to 59.5, lower than estimates but above the prior month’s reading of 58.6.
“After the marked improvement in sentiment in August, consumers showed signs of uncertainty over the trajectory of the economy.” Inflation expectations in the same report for 1-year dropped to 4.6% vs. 4,8% in August,” Joanne Hsu, director of the UoM Survey, said.
Meanwhile, the greenback is fluctuating during the session, about to finish unchanged. The US Dollar Index is down 0.02%, at 109.718, while the US 10-year benchmark note rate is at 3.449%, almost flat.
These previously mentioned factors bolstered appetite for the non-yielding metal, gaining traction, and extending its weekly gains to 3.86%.
Aside from this, US data reported during the current month is giving the green light to Fed officials to raise rates by ¾ of a percent to the 3-3.25% range. Even though there has been speculation that the Fed might go 100 bps, analysts at Societe Generale think otherwise.
“The FOMC meets on the 21 September, and we expect a third 75-bp rate hike. There has been some talk of 100bp, but Fed officials pushed back on that option earlier and we do not expect them to take it now. Longer term, the extension of the SEP through 2025 offers much more insight into their business cycle views,” analysts at Societe Generale wrote.
Silver (XAG/USD) Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD turns south to near 0.6300 as US Dollar finds demand
AUD/USD fades its recovery and turn south again to test 0.6300 in the Asian session on Monday. US President Trump's impending tariffs and geopolitical tensions fuel fresh haven dmeand for the US Dollar while disappointing Chinese inflation data remains a drag on the Australian Dollar.
USD/JPY recovers above 147.50 on renewed US Dollar buying
USD/JPY is recovering losses above 147.50 early Monday. Fears over a global tariff war combined with US economic slowdown concerns fuel risk-off flows, fuelling a fresh US Dollar uptick while Japanese Yen buyers refuse to give up amid prospects of the Fed-BoJ policy divergence.
Gold struggles above $2,900 but bullish bias remains intact
Gold price is extending its range-play above $2,900 starting a new week on Monday, looking to defend the critical support line near $2,910. The US Dollar stays weak amid tariff war-led economic concerns and falling US Treasury yields.
Here's all that transpired in the White House Crypto Summit
In the White House Crypto Summit on Friday, President Donald Trump addressed several plans to foster a suitable regulatory environment for crypto in the US.
February CPI preview: The tariff winds start to blow
Consumer price inflation came out of the gate strong in 2025, but price growth looks to have cooled somewhat in February. We estimate headline CPI rose 0.25% and the core index advanced 0.27%. The moderation in the core index is likely to reflect some giveback in a handful of categories that soared in January.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.