SILVER PRICE FORECAST: XAG/USD DROPS BELOW $19.50 AS TRADERS BRACE FOR NEXT WEEK’S FOMC DECISION

Silver is falling below the 100-day exponential moving average (EMA) and extending its losses to the 50-day EMA at $19.08. US Core PCE rose 5.1% on the year, beating estimates, paving the way for further tightening. Investors are focused on the Federal Reserve’s monetary policy meeting in November, with expectations for a 75 basis point hike in the US central bank. Silver at , stumbles against key resistance ahead of the US economic data session in New York, justifying further Fed action, while risk momentum keeps safe-haven assets under pressure, but the rising US dollar approaches next week’s central bank monetary policy . political decision. XAG/USD is trading at $19.17 a troy ounce, down 2% from an intraday high of $19.63. US CORE PCE CAUSES FURTHER JOB DECLINE Wall Street Extends Gains Even As Greenbacks Lift. The Commerce Department’s inflation measure, also the central bank’s most popular inflation gauge, rose 0.5% from last month, justifying the need for more rate hikes amid the Fed’s gyrations in financial markets. Also annually, this indicator rose by 5.1%, exceeding forecasts by .9 days. In a separate report, the Fed Employment Cost Index (ECI), which slows wage inflation, is 1.2%. According to the Ministry of Labor, in July-September. Excluding inflation data, the final reading of the University of Michigan’s consumer sentiment for October was unchanged at 59.9, while inflation expectations were barely changed. According to the report, one-year inflation is estimated at 5.1% and 5-year inflation at 2.9%. Dallas Fed Trimmed Mean PCE last fell to .3% from 6% in September. Meanwhile, the Atlanta Fed’s GDPNow forecast for the fourth quarter is 3.1 percent. Silver is on the defensive as US Treasury yields rose to support the US dollar. The market reaction to the US data was felt in the fixed income market as Treasuries sold off, which was positive news for bond yields. The yield on the 10-year US Treasury rose nine points to .01 percent, a headwind for the precious metals segment. Meanwhile, the US dollar index, which measures the value of money vs. a basket of rivals rose 0.30% to 110,895, supported by . Market participants now turn to next week’s meeting of the Federal Open Market Committee (FOMC), where most analysts expect the Fed to raise interest rates by 75 basis points . CME FedWatch Tool, 8 .5% likely. However, the December meeting has most investors split between 50 and 75 basis points

James Rogers

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