Silver holds above $37.87 as traders await Powell’s remarks at Jackson Hole, a potential catalyst for the next big move.
Market Overview
Silver (XAG/USD) ended last week slightly weaker, closing at $38.00 per ounce, down 0.83%, after failing to sustain a rally toward $38.74. That level now acts as immediate resistance, while the $37.87 support zone remains the key battleground that could determine silver’s short-term direction.
For now, the market is consolidating in a narrow range. Traders are split: some see value-buying opportunities above $37.87, while others are waiting for a breakout beyond $38.74 to confirm bullish momentum.
Key Technical Levels
- Support: $37.87 (pivotal), followed by $36.21 and $35.28.
- Resistance: $38.74 (short-term ceiling), with further upside potential toward $39.53 if buyers gain momentum.
- Current Bias: Neutral, awaiting a breakout trigger.
Until silver breaks decisively above $38.74 or slips below $37.87, range-bound trading is expected.
Powell’s Jackson Hole Speech – The Decisive Catalyst
The Jackson Hole Economic Symposium begins this week, with Fed Chair Jerome Powell’s speech on Friday expected to be the highlight. After July’s hotter-than-expected PPI data, traders are questioning the pace of Fed rate cuts in September.
- A dovish Powell could reaffirm expectations of easing, boosting silver prices.
- A hawkish Powell may weigh on precious metals, risking a pullback toward $36.21.
In addition, markets will closely watch:
- FOMC minutes (Wednesday)
- US jobless claims & PMI data (Thursday)
These releases will offer clues on how the Fed views inflation, tariffs, and labor market conditions.
Short-Term Outlook
For now, silver is likely to hover above $37.87 until Powell’s remarks set the tone.
- If support holds and Powell signals easing → Silver could rally toward $39.53.
- If Powell dampens rate cut bets → Silver may slip toward $36.21 or lower.
Either way, $37.87 remains the decisive level to watch this week.
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