Bitget App
Trade smarter
MarketsTradeFuturesStocksEarnInstitutionAI & More
Silver Price Forecast: XAG/USD slips below $60.50 amid rising inflation concerns

Silver Price Forecast: XAG/USD slips below $60.50 amid rising inflation concerns

FXStreetFXStreet2026/10/02 02:18
By:FXStreet

Silver price (XAG/USD) loses ground after registering gains the previous day, trading around $60.30 per troy ounce during Asian hours on Friday. Silver price retreats as rising crude oil costs, driven by fears of a deteriorating conflict between the US and Iran, reignite broader inflation concerns.

Meanwhile, the non-yielding white metal faces additional selling pressure from a strengthening US Dollar (USD) and climbing Treasury yields, as investors recalibrate their expectations following recent hawkish remarks from Federal Reserve (Fed) officials.

Logan’s hawkish tilt boosts Dollar as higher yields seen reducing need for aggressive tightening

Fed’s Logan delivered a notably more hawkish message, with a FXS Speechtracker score of 9.2/10 compared to the established baseline of 8.1/10, underscoring a stronger conviction that policy rates must rise further. The key remark that “higher yields may also indicate increased term premiums, lowering need to tighten monetary policy” sits alongside calls for at least 50 bps more in rate hikes and several additional moves, suggesting that while bond market dynamics may do some of the tightening, the Fed stance is still not viewed as sufficiently restrictive. Logan’s emphasis on a strengthening economic expansion, a well-balanced labor market, and the need to revive price stability reinforces a hawkish tone supportive of the Dollar.

The FXS Fed Sentiment Index rose by 1.68 points to 136.59, signaling a clear move deeper into hawkish territory well above the neutral 100 threshold. This upward shift in the FXS Fed Sentiment Index, aligned with the elevated FXS Speechtracker score, confirms that Logan’s remarks are perceived as materially increasing expectations for further policy tightening and sustained support for the Dollar.

Fed’s Cook flags AI as inflation risk, keeping Dollar bulls

Fed’s Cook’s speech scores 7/10 on the FXS Speechtracker, only marginally above the 6.9/10 historical average, signaling a tone that is slightly more consequential but broadly consistent with the established baseline. The emphasis on AI as a top risk for 2027, already generating “pockets of inflation” and potentially triggering sector-specific supply shocks, tilts the message toward vigilance on inflation expectations and consumer confidence rather than comfort with the current disinflation trend. Cook’s focus on AI-driven productivity gains as a possible source of future inflation and the need to keep inflation expectations anchored reinforces a cautious, mildly hawkish bias for the Dollar.

Crude prices could further appreciate as geopolitical tensions flare up again. Reports suggest attacks on at least three tankers in the Strait of Hormuz and repeated strikes on regional refineries by Iran and its Houthi allies. The US is considering the deployment of another aircraft carrier to the Middle East, escalating the risk of broader conflict with Iran and threatening further disruption to energy supplies.

Additionally, the Pentagon is evaluating the deployment of 10,000 sailors and Marines to the Persian Gulf, giving President Donald Trump expanded operational flexibility should he choose to intensify military action against Iran, strikes he has reportedly signaled could resume after the November midterm elections.

Traders await Friday’s release of the US September employment data for signals regarding the future direction of Federal Reserve (Fed) monetary policy. Economists project Nonfarm Payrolls to show an addition of 90,000 jobs, marking a slowdown from the 162,000 recorded in the previous month, while the Unemployment Rate is expected to remain unchanged at 4.1%.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Wall Street Stands Guard as Bessent Strikes Again: Aftereffects of August's "Treasury Turnaround" Persist, November Refinancing Notice Could Be the Next Flashpoint

As the US Treasury prepares to update its debt management plan in November, key clues may emerge on Friday.

智通财经•2026/10/16 01:06

"Coca-Cola belief" never goes out of style! KFC in America says goodbye to Pepsi and embraces Coca-Cola (KO.US); Buffett-style "boring investment" returns to the spotlight

KFC has chosen Coca-Cola as its soda supplier in the United States, abandoning its long-term partner Pepsi. As of the close of the U.S. stock market on Thursday, Coca-Cola's (KO.US) stock price reached a record high, defying the ongoing declines in global tech stocks, especially in the semiconductor and broad AI computing sectors.

智通财经•2026/10/16 01:06

AI financing concerns weigh heavily on chip stocks, global tech sector has lost over $1 trillion this week

Multiple pressures, including rising expectations of a Federal Reserve rate hike and increasing AI financing costs, have led to a massive sell-off in global tech stocks this week. The combined market value of the world's top 20 AI and semiconductor stocks has evaporated by more than $1 trillion, and the semiconductor ETF (SOXX) has recorded its longest losing streak in 11 years. On Thursday, SK Hynix continued to plunge by over 10% in a single day, while Nvidia, Samsung, and SoftBank were not spared.

华尔街见闻•2026/10/16 00:51

Safe Haven Amid AI Crash! Major Pharmaceutical Stocks Approach Historic Highs

Amid concerns over AI capital expenditures, funds are seeking a "certainty premium." State Street Healthcare ETF reached a record high. Eli Lilly and AbbVie are both approaching their historical highest closing prices, while Gilead and Amgen have surged 7.7% and 7.2% respectively over the past five days. Eli Lilly continues to bet on the future through its GLP-1 dominance and 40 M&A deals totaling $20 billion. AbbVie's core drug Skyrizi has shown positive data for its new subcutaneous formulation, which is expected to extend its patent and drive additional sales.

华尔街见闻•2026/10/16 00:37
Safe Haven Amid AI Crash! Major Pharmaceutical Stocks Approach Historic Highs