ByARSLAN BUTT

Silver (XAG/USD) faced bearish pressure today, dipping below the $29.50 mark during the European trading session. Despite this pullback, the overall trend for silver remains bullish, fueled by expectations of a Federal Reserve rate cut and ongoing geopolitical tensions.

The metal's recent dip comes as traders exercise caution ahead of key economic events, including the release of the July FOMC meeting minutes and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium on Friday.

Key Factors Supporting Silver's Long-Term Bullish Trend

  • Fed Rate Cut Expectations: Growing speculation that the Federal Reserve will reduce interest rates by 25 basis points in September has been a major driver for silver. The CME Group's FedWatch Tool shows a 70% probability of this cut, which would likely weaken the US dollar and boost silver prices.
  • Geopolitical Tensions: Ongoing global tensions continue to enhance silver's appeal as a safe-haven asset, supporting its long-term bullish trajectory.
  • Technical Support Levels: Despite today’s dip, silver remains well-supported around the $28.65-$29.00 demand zone, where the 50-day Exponential Moving Average (EMA) at $28.66 provides additional support. This zone is crucial for maintaining the bullish outlook.

Social Media Sentiment: Analysts See Silver's Potential

Social media analysts are also weighing in on silver’s current trend.

Twitter user Graddhy, known for his commodities analysis, noted, "SILVER backtested small thin black line and is still holding 28.50 thick black line. After big blue breakouts, silver has a history of moving big. This is still a very, very good-looking big picture chart."