What's next for Silver and Gold?

21 may

XAGUSD
XAUUSD
DXY

Finally 😎 Silver broke through $30.

So what's next?

Long-term: I would say there is nothing on its way to go for $50. BUT, what would support Silver to go for $50? where's the demand for silver? How would supply change in the coming years? ....
I would say, let's not get ahead of ourselves and focus on what's going on now, then I try to prepare a separate post for the reasons I have for staying bullish on silver in the coming years.

Short-term: As you might have noticed, on 15 May, after the US Fed announced the CPI data, silver started its rally to $30. The recent CPI y/y data came out at the expected level of 3.4% and the CPI m/m was at 0.3% which was lower than the market expectations. So, Fed Chair Jerome Powell continued his recent interviews with a dovish tone which signals that we are very close to a rate cut **. For now, the first rate cut is expected to happen in September.
Long story short, gold and silver are pricing in the rate cuts now as this sentiment pulling DXY down. So, in the short-term [with this atmosphere], I would like to see Silver between $33.6 - $36.4 and Gold entering the $2580 - $2650 area. In the meantime, DXY can reach to 103. I have highlighted these areas on the chart 😊.



** Watch out for unemployment numbers as the Fed shifts its focus on that. If you are a day trader, you can expect higher volatility around unemployment news than before and you expect this number to have a higher impact on the longer-term trends of DXY.


** Also, keep that in mind, if they want to normalize the 3% inflation rather than 2%, it means we can expect higher levels of interest rates for a longer period of time.