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Silver prices (XAG/USD) have risen for the fourth consecutive day, trading near $62.60 during Asian hours on Friday. The rally follows easing speculation about Federal Reserve rate hikes, which has reduced pressure on the dollar and boosted demand for non-yielding assets like silver. Analysts attribute the move to improved risk appetite and reduced inflation concerns, with traders closely monitoring Fed policy signals ahead of upcoming economic data releases.
The shift in Fed rate hike expectations is critical for commodity markets. A dovish stance from the Fed typically weakens the dollar, making dollar-denominated assets like silver more attractive. This dynamic is particularly relevant for global investors seeking inflation hedges or portfolio diversification. Traders are also watching for signs of a potential reversal if rate hike bets rebound or economic data triggers renewed hawkish sentiment.
For MENA investors, the silver rally aligns with broader trends in precious metals driven by geopolitical uncertainties and currency volatility in the Gulf. Key watchpoints include the Fed's June meeting minutes, U.S. nonfarm payrolls, and the U.S.-China trade negotiations. Technical levels at $62.50 (support) and $64.00 (resistance) will be pivotal for near-term price direction.
