Silver Price Forecast: XAG/USD holds above $69.00 as traders assess Fed stance

Silver price (XAG/USD) rises after posting losses in the previous day, trading around $69.10 per troy ounce during the Asian hours on Thursday. Investors are closely tuning into Federal Reserve (Fed) Chair Kevin Warsh’s upcoming speech at the annual Jackson Hole symposium on Friday.

Meanwhile, Silver prices are holding firm as market participants continue to evaluate the trajectory of Federal Reserve monetary policy leading into next month's crucial meeting. This steadying comes alongside fresh economic data released Wednesday, which showed July’s PCE price index accelerating to 0.2% month-on-month, beating the 0.1% forecast, while pushing the annual inflation rate up to 3.7%.

Beyond interest rate expectations, precious metals remain supported by the "debasement trade," with investors seeking protection against potential US debt crisis risks and a weakening dollar. Silver is receiving an extra boost from strong fundamental drivers, enjoying robust industrial demand tied directly to green energy technologies, solar photovoltaic panels, electric vehicles, and the expanding infrastructure required for artificial intelligence data centers.

According to TD Securities, the recent strength in precious metals is unlikely to translate into an immediate retest of record highs for Gold. While the supportive backdrop has helped Silver, the bank warns that, “with the market still pricing in hikes for 2027, and the energy market remaining a notable risk, we caution this rally may be too early for a renewed run back to record highs for the yellow metal.”