SILVER PRICE FORECAST: XAG/USD PARES HEFTY WEEKLY GAINS BELOW $22.00 AMID MIXED SENTIMENT ll

That said, Weekly Initial Jobless Claims dropped to 192K for the week ended on March 10 versus 205K expected and 212K prior whereas the four-week average figure dropped to 196.5K versus 197.25K prior (revised). Further, Housing Starts jumped to 1.45M in February from 1.321M previous reading and 1.31M analysts’ estimations while the Housing Starts jumped to 1.524M during the said month versus 1.34M expected and 1.339M prior. Additionally, the Philadelphia Fed Manufacturing Survey gauge came in as -23.2 compared to -14.5 consensus and -24.3 prior.

It should be observed that the latest reduction in the US inflation expectations per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) data also favors the Silver price, by way of exerting downside pressure on the US Dollar.

While portraying the mood, US 10-year and two-year Treasury bond yields struggle for clear directions as the previous day’s rebound fails to supersede the two-week downtrend. However, Wall Street closed in the green with more than 1.0% gains by each of the benchmark indices while S&P 500 Futures print mild losses at the latest.

Elsewhere, headlines suggesting China’s sustained economic recovery, shared by Bloomberg, also challenge the Silver bears.

Looking ahead, metal traders should keep their eyes on the next week’s Federal Open Market Committee (FOMC) monetary policy meeting. Ahead of that, preliminary readings of the US Michigan Consumer Sentiment Index for March and the UoM 5-year Consumer Inflation Expectations for the said month will be important for clear directions.