Silver Tops $32.50 as Dollar Weakens, China Stimulus Fuels Demand
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Silver (XAG/USD) climbed past $32.50 amid a weaker U.S. Dollar and declining Treasury yields, with added support from anticipated Chinese stimulus. The U.S. presidential election and an expected Fed rate cut this week add further caution to markets. China’s stimulus, likely exceeding 10 trillion yuan, could drive silver demand, boosting prices in the near term.
Silver Gains on Lower USD and Treasury Yields
Silver prices rebounded to $32.70 on Monday, breaking a three-day losing streak as the U.S. Dollar weakened. With the Dollar Index (DXY) around 103.80 and U.S. 2-year and 10-year Treasury yields at 4.17% and 4.31%, respectively, the Dollar’s decline enhances the appeal of dollar-denominated assets like silver. Lower yields and a weaker dollar typically make silver more attractive for buyers holding other currencies.
China’s Stimulus Measures Expected to Bolster Silver Demand
China’s National People’s Congress Standing Committee is set to discuss a stimulus package exceeding 10 trillion yuan this week. Given China’s status as a leading manufacturing hub for electronics, automotive components, and solar panels, increased industrial demand for silver is expected as these measures are implemented.
Upcoming Fed and U.S. Election Catalysts for Silver
The U.S. presidential election has heightened uncertainty, with final polls showing tight races across battleground states. This adds caution to markets as traders await the Fed’s decision, where a 25-basis point rate cut is expected. Lower rates would further pressure the USD, potentially offering additional support for silver.
Technical Levels for XAG/USD
For silver, key support remains at $32.00, while resistance is seen at $33.00. A sustained move above $32.50 could open further upside, especially if U.S. election uncertainty and Chinese stimulus continue to favor demand for silver.
Silver Gains on Lower USD and Treasury Yields
Silver prices rebounded to $32.70 on Monday, breaking a three-day losing streak as the U.S. Dollar weakened. With the Dollar Index (DXY) around 103.80 and U.S. 2-year and 10-year Treasury yields at 4.17% and 4.31%, respectively, the Dollar’s decline enhances the appeal of dollar-denominated assets like silver. Lower yields and a weaker dollar typically make silver more attractive for buyers holding other currencies.
China’s Stimulus Measures Expected to Bolster Silver Demand
China’s National People’s Congress Standing Committee is set to discuss a stimulus package exceeding 10 trillion yuan this week. Given China’s status as a leading manufacturing hub for electronics, automotive components, and solar panels, increased industrial demand for silver is expected as these measures are implemented.
Upcoming Fed and U.S. Election Catalysts for Silver
The U.S. presidential election has heightened uncertainty, with final polls showing tight races across battleground states. This adds caution to markets as traders await the Fed’s decision, where a 25-basis point rate cut is expected. Lower rates would further pressure the USD, potentially offering additional support for silver.
Technical Levels for XAG/USD
For silver, key support remains at $32.00, while resistance is seen at $33.00. A sustained move above $32.50 could open further upside, especially if U.S. election uncertainty and Chinese stimulus continue to favor demand for silver.