A brief rebound in silver prices following US economic data failed to signal a trend reversal amid persistent Fed hawkishness.
Silver prices climbed 0.8% on Thursday, recovering from a session low near 56.50 to briefly touch 59.00 before settling around 58.00. The move followed stronger-than-expected US GDP data and a rise in capital goods orders, alongside a softer dollar and in-line inflation figures that tempered aggressive rate-hike expectations.
Despite the intraday bounce, silver remains in a broader downtrend, with technical indicators showing no strong reversal signals. The daily Stochastic RSI sits at 48, failing to confirm a sustained upturn, while the metal’s failure to hold gains suggests oversold conditions rather than a base-building phase.
The Federal Reserve’s hawkish stance continues to weigh on silver, with markets pricing at least one more rate hike despite earlier expectations of cuts. The policy rate remains at 3.75%, with projections pointing to higher-for-longer rates, reinforcing headwinds for the metal.