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NZD/USD Price Forecast: Kiwi breaks 0.5800 as bears take control

Pound Sterling Price News and Forecast: GBP/USD under pressure as hot PPI puts Fed hike in play

Why Silver costs $8 more in Shanghai

Nordea expects further ECB increases in December and March, while Scotiabank sees scope towards 1.1700 if EUR/USD clears resistance.
The Euro to Dollar (EUR/USD) exchange rate recovered from a sharp fall below 1.1600 on Thursday as investors assessed US producer-price inflation and the European Central Bank’s latest rate increase.

At the time of writing, EUR/USD was trading around 1.1624, down 0.09% against the previous close, having rebounded from an intraday low near 1.1595.

Image: EUR/USD intraday chart showing immediate reation to the US PPI and ECB rate hike

Economists at Nordea believe the ECB has further tightening ahead, despite policymakers declining to commit to their next move.

“We maintain our baseline of two further 25bp rate hikes at quarterly intervals, with the next one in December and the second in March 2027.”

That path would take the deposit rate from 2.50% to 3.00%, providing potential support for the Euro through higher returns on euro-denominated assets.

Nordea sees more tightening behind cautious ECB language
The ECB raised its three key interest rates by 25 basis points, matching the increase Scotiabank had described as fully priced before the announcement.

Its monetary policy statement projected inflation at 3.0% this year and 2.5% in 2027, with the latter revised higher.

“We are not pre-committing to a particular rate path,” the ECB said.

Scotiabank had expected a forceful endorsement of further near-term tightening as recovering oil prices threatened broader price pressures.

Nordea reads the inflation projections as evidence that September’s increase will be followed by others.

“A very extended period of inflation above target strongly supports the case for more rate hikes.”

However, Nordea also notes that markets have moved to price a faster tightening path than its own forecast, leaving scope for those expectations to reverse if December remains the likeliest next move.

We believe that limits how much support the Euro exchange rates can draw from further hikes alone: their timing, and whether expectations move beyond what is already priced, will matter.

US inflation keeps the Dollar side of the trade unsettled
The US producer-price figures showed core prices, excluding food and energy, rose 0.2% in August, easing from July’s 0.3% increase, with annual inflation at 4.6%.

Headline prices increased 0.4% on the month and 5.4% annually as energy prices jumped 4.2%.

The slower monthly core reading offers encouragement, but persistent price pressure leaves the FED’s response an important constraint on Euro gains.

The recovery keeps Scotiabank’s case for a EUR/USD move towards 1.1700 in focus.

Its pre-release technical assessment nevertheless identified an obstacle just above current levels.

“The 200 day MA (1.1634) continues to offer resistance on a closing basis, and we continue to highlight the absence of any major resistance ahead of the local high around 1.17.”

A close above 1.1634 would strengthen the case for another attempt at 1.1700, while a renewed fall through the session’s 1.1595 low would undermine the recovery.

The battle of the Gold whales [Video]

Daily Spot Gold (XAUUSD) Spot gold is sharply lower on Thursday after being rejected by the minor pivot that is controlling the direction. The main swing chart says the trend is down. But the 50-day moving average at $4,266.76 is indicating strength. This may be helping to generate the four straight days of rangebound trading.

According to the swing chart, a trade through $4,282.62 will reaffirm the downtrend, while a move through $4,510.93 changes the trend to up.

Retracement zone support is $4,319.60 to $4,230.51 and retracement zone resistance is $4,489.87 to $4,538.77.

The 50-day moving average support is $4,266.76 and 200-day moving average resistance is $4,537.97.

The short-term range is $4,282.62 to $4,510.93. Its 50% level at $4,396.78 was the spot to watch earlier in the session. When it failed as support, the selling accelerated. The low of the session is $4,324.17. Because of today’s strong downside momentum, however, the focus has shifted to $4,319.60, which is the top of a short-term retracement zone.

Daily US Dollar Index (DXY) The U.S. Dollar Index is up 0.31% at 99.090. The dollar had been weak all week despite elevated yields. That unusual combination had been supporting gold. Buyers could absorb the bond market pressure because the currency side was still helping.

That changed Thursday. The 10-year above 4.90% and the dollar moving higher at the same time took both supports away from gold. The result is a $60 drop on a day the PPI did not even beat expectations.

Friday’s Consumer Price Index Is Now the Bigger Test The Consumer Price Index Friday was already the more important report. Thursday’s oil and yield moves made it even more significant.

A soft CPI gives the bond market a reason to question Thursday’s yield surge. A hot CPI with oil already above $100 and yields at multiyear highs reinforces the September rate-hike case. Thursday showed gold does not need a hot inflation print to sell off if yields keep climbing on crude.

What to Watch Friday’s Consumer Price Index is the next test for gold after Thursday’s $60 drop. The bond market broke yields to multiyear highs without a hot PPI. Crude above $100 did the work. The CPI decides whether that pressure holds or whether the bond market takes some of it back before the Fed meets September 15-16.

The bias remains to the downside with the trend down and the pivot at $4,396.78 now acting as resistance after failing Thursday. Sellers are targeting $4,319.60. A break of that level extends the move into the support cluster at $4,282.62 and the 50-day moving average at $4,266.76. The Consumer Price Index Friday gets the last word before the Fed meets September 15-16.

If you’d like to know more about how to trade gold, please visit our educational area.

British Pound: Consolidation against US Dollar before UK data and BoE – Scotiabank

The Silver Market Does Have an Underlying Bid The silver market does have an underlying bid, though, because there is the electrification and clean-energy aspect of silver that still keeps it lively. With that being the case, the silver market looks as if it is trying to find its way one direction or the other.

With the ECB interest rate decision followed by PPI and then CPI on Friday, we may get a little bit of a move based on that. The Federal Reserve is announcing its latest interest rate decision on Wednesday of next week. That will be big on the calendar as well, as it could determine the next trend.

With everything that is going on, it is not a huge surprise that silver has been somewhat sideways in this area, as we are trying to fight headlines, interest rates, and central-bank hiking expectations all simultaneously. Therefore, I think it makes quite a bit of sense that traders might either be on the sidelines or simply not overly convinced as to what to do.

Euro: Upside bias within defined band against US Dollar – UOB

Gold prices weakened (-0.5%) by mid-day in London, while silver (-2.3%) gave back all of yesterday's gains, and copper (-3%) took the brunt of the sell-off with an even sharper drop. It is hardly surprising to see the metals struggle in this macro environment.

USD/JPY and EUR/JPY are flashing daily oversold momentum signals not seen since 2024, raising the risk of a near-term reversal ahead of the U.S. CPI report and Federal Reserve policy decision.

Both currency pairs are approaching key technical levels:

USD/JPY is nearing the lower boundary of a respected uptrend channel that has been in place since 2023. Daily momentum is also approaching oversold levels last seen in 2024. EUR/JPY is testing the 27.2% retracement level of the 2025–2026 advance, while daily momentum has reached oversold levels last seen in 2024. These developments come amid expectations and risks surrounding a potential Bank of Japan rate hike, ahead of Friday’s U.S. CPI report, and as Brent crude prices move back above $100 per barrel.

According to the Food and Agriculture Organization of the United Nations, the global food price index rose in August to its highest level since late 2022.

With oil prices elevated, geopolitical tensions unresolved, inflation concerns increasing and daily momentum reaching oversold levels not seen since 2024, a reversal in the direction of USD/JPY and EUR/JPY may be developing.

USD/JPY Forecast: Weekly and Daily Time Frames — Log Scale

Source: TradingView

Following the breakdown below the April 2025–July 2026 uptrend, USD/JPY has been respecting the Fibonacci retracement levels of that advance.

Price action recently dropped below the 38.2% retracement at 154.80 and is now only a few points away from the 50% retracement and the next projected support zone near 152.

This level also aligns with the lower boundary of the parallel April 2025–July 2026 channel. At the same time, the daily RSI is showing a bullish divergence from oversold levels last seen in 2024.

This setup hints at a potential final leg lower before a possible reversal during the month.

Bearish scenario: A breakdown below 152 would signal further weakness in the dollar and additional strength in the yen. This could target the lower boundary of the larger channel that has been in place since 2023, near 149.

The 149 area could create another major reversal risk, particularly if momentum sinks deeper into oversold territory across multiple time frames.

Bullish scenario: Reclaiming 154.80 would strengthen the short-term bullish case and open the way toward the 158.40–161 zone.

This area represents a defining barrier between long-term bullish continuation toward the yearly highs and potentially 170, and the risk of another corrective move.

Overall, the bias leans toward a short-term bearish correction while the longer-term bullish structure remains in place.

EUR/JPY Forecast: Weekly and Daily Time Frames — Log Scale

Source: TradingView

From a weekly perspective, EUR/JPY is holding above the 27.2% retracement level of the February 2025–April 2026 uptrend, near the 178 mark.

At the same time, the daily RSI is falling into oversold territory last seen in 2024, increasing the risk of a bullish reversal in correlation with the USD/JPY chart.

If price drops below 178, the next target would be the 38.2% retracement near 175. This level also aligns with the July 2024 high and could create a high-probability dip-buying setup if momentum indicators move deeper into oversold territory across multiple time frames.

On the upside, a breakout above 181.40 would redirect price action toward the yearly highs and the 8-month resistance zone near 185.60–187.

A sustained move above this zone could open the way toward new multi-year highs.

Overall, the short-term bearish bias and longer-term bullish risks remain in focus.

Written by Razan Hilal, CMT

Follow on X: @Rh_waves

Silver Price Forecast: XAG/USD tumbles below $66 as US Dollar recovers ahead of US PPI data

Referenced assets

Key takeaways ECB hike largely priced in: Markets widely expect the ECB to raise its deposit rate by 25 basis points to 2.50%. The bigger catalyst for EUR/USD is whether Christine Lagarde signals further tightening.Energy inflation has shifted the ECB outlook: Brent crude above US$100 and Eurozone inflation above 3% have revived hawkish policy risks.ECB-Fed divergence is critical: A hawkish ECB combined with stable Fed expectations would favour EUR/USD, while indications that the ECB is near its terminal rate alongside rising Fed hike expectations would strengthen the US dollar.EUR/USD technical structure remains constructive: The pair has reclaimed its rising 20-day MA and is moving back above the 200-day MA at 1.1623. EUR/USD is holding close to a two-week high around 1.1640 ahead of today’s European Central Bank (ECB) monetary policy decision, with markets widely expecting a 25-basis-point rate hike as policymakers respond to renewed inflation pressures from surging energy prices.

The expected move would lift the ECB’s deposit facility rate from 2.25% to 2.50%, marking its second rate hike this year after the central bank restarted tightening in June. The hike itself is largely priced in; therefore, the bigger directional catalyst for EUR/USD is likely to come from ECB President Christine Lagarde’s guidance on whether further tightening is required.

Energy shock has changed the ECB rate outlook The renewed spike in energy prices has become the dominant macro driver behind the ECB’s hawkish shift. Brent crude has moved back above US$100 per barrel, following another escalation in the US-Iran conflict and disruptions to shipping in the Middle East. Eurozone inflation is running above 3%, leaving headline inflation well above the ECB’s 2% medium-term target.

This creates an uncomfortable policy mix for the ECB. Higher oil and gas prices are simultaneously lifting inflation while threatening economic growth, leaving policymakers to decide how aggressively they should respond to what remains largely a supply-driven inflation shock.

At its July meeting, the ECB kept the deposit rate unchanged at 2.25%, while stressing that the full inflationary impact of the energy shock had yet to materialise and that it would monitor indirect and second-round effects closely. That makes today’s communication particularly important: any evidence that higher energy costs are spreading into service prices, wages or inflation expectations would strengthen the case for additional hikes.

Is this the final ECB hike? That is probably the most important question for EUR/USD.

A Reuters poll published last week showed economists broadly expecting today’s 25-basis-point hike to 2.50%, but with most forecasting that this would be the final increase in the current cycle. Eurozone growth is expected to remain relatively soft, while wage pressures have moderated, reducing the risk of another sustained wage-price spiral.

However, the balance of risks has shifted toward a more hawkish stance as the Middle East conflict has intensified.

Deutsche Bank, for example, now expects another 25-basis-point ECB hike in December, taking the potential terminal deposit rate to 2.75%, arguing that persistent energy-related inflation risks could require tighter monetary policy for longer.

This distinction matters for EUR/USD.

If Lagarde signals that 2.50% may be the peak, the euro could struggle to extend its recent gains, as today’s hike is already heavily discounted.

Conversely, language suggesting that the Governing Council remains prepared to hike again, particularly if energy inflation feeds into underlying prices, would encourage markets to price a higher ECB terminal rate, providing a potential positive catalyst for EUR/USD.

ECB-Fed rate expectations remain the key FX transmission channel EUR/USD will also trade on the relative rate outlook between the ECB and Federal Reserve, rather than the ECB decision in isolation.

The Fed currently maintains its policy rate at 3.50%-3.75%. A Reuters poll shows around 70% of economists expect the Fed to remain on hold at its 15-16 September meeting, although market pricing has become significantly more hawkish after stronger US economic data and renewed inflation concerns.

The Fed funds futures market is now assigning roughly a 62% probability of a Fed rate hike this month, with higher energy prices also creating upside risks to US inflation (see Fig. 1).

Fig. 1: CME FedWatch tool aggregated FOMC meeting outcome probabilities as of 10 Sep 2026 (Source: CME website). The information presented is historical information, and past performance is not indicative of future performance. This sets up an important relative-rates battle for EUR/USD:

A hawkish ECB and unchanged Fed expectations suggest a positive outlook for EUR/USD.

ECB signals tightening is nearly finished, and rising Fed hike expectations suggest EUR/USD is negative.

Further ECB rate hikes priced alongside Fed rate hikes imply that EUR/USD is likely to become more sensitive to economic growth and bond-yield differentials.

Hence, tomorrow’s US CPI release could be almost as important for EUR/USD as today’s ECB meeting, because stronger-than-expected US inflation would reinforce expectations for Fed tightening and potentially widen the US-eurozone yield differential back in favour of the US dollar.

Now, let’s focus on the short-term trajectory (1 to 3 days) of the EUR/USD from a technical analysis perspective.

EUR/USD is trading back above the 200-day MA Fig. 2: EUR/USD minor trend as of 10 Sep 2026 (Source: TradingView). The information presented is historical information, and past performance is not indicative of future performance. The recent 1.23% minor corrective decline seen in the EUR/USD from the 21 August 2026 high of 1.1712 to the 2 September 2026 low of 1.1566 may have ended.

The price action has traded back above its rising 20-day moving average since Friday, 4 September 2026, ex-post the US non-farm payroll release, and is now inching back above the key 200-day moving average (1.1623) with the current intraday level at 1.1638 at this time of writing (see Fig. 2).

These observations suggest that EUR/USD may be undergoing a new minor bullish impulsive up-move sequence.

Watch the 1.1604 short-term pivotal support to maintain the minor bullish impulsive structure, and a clearance above the 1.1654 near-term resistance targets the next intermediate resistances at 1.1680 and 1.1710 in the first step.

On the other hand, a failure to hold and an hourly close below 1.1604 negate the bullish tone, paving the way for a choppy minor corrective decline that could expose the next intermediate supports at 1.1583 and 1.1560.

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About the Author

Kelvin Wong Senior Market Analyst

Based in Singapore, Kelvin Wong is a well-established senior global macro strategist with over 15 years of experience trading and providing market research on foreign exchange, stock markets, and commodities.

Passionate about connecting the dots in the financial markets and sharing perspectives around trading and investment, Kelvin Wong is an expert in using a unique combination of fundamental and technical analyses, specializing in Elliott Wave and fund flow positioning, to pinpoint key reversal levels in the financial markets.

In addition, over the last ten years, Kelvin has conducted numerous market outlook and trading-related seminars, as well as technical analysis training courses, for thousands of retail traders.

Based in Singapore, Kelvin Wong is a well-established senior global macro strategist with over 15 years of experience trading and providing market research on foreign exchange, stock markets, and commodities.

Passionate about connecting the dots in the financial markets and sharing perspectives around trading and investment, Kelvin Wong is an expert in using a unique combination of fundamental and technical analyses, specializing in Elliott Wave and fund flow positioning, to pinpoint key reversal levels in the financial markets.

In addition, over the last ten years, Kelvin has conducted numerous market outlook and trading-related seminars, as well as technical analysis training courses, for thousands of retail traders.

Gold (XAU/USD) edges lower on Thursday after failing to find acceptance above $4,400, with Oil prices nearing the key $100 level and global yields rallying ahead of a string of monetary policy decisions from most of the world’s major central banks.

A weak US Dollar, on the other hand, is keeping the precious metal within the last 10 days’ trading range, while analysts at TD Securities see scope for further Gold appreciation, with the “precious metal landscape still broadly supported by the renewed Dollar-debasement theme, elevated central bank buying and renewed ETF accumulation.”

In this context, the TH Securities expert argues that even if the Fed adopts a more hawkish stance, it is likely to “only postpone the timing of the next leg higher rather than catalyze material downside” for gold and the broader precious metals complex.

Technical Analysis: Hovering above key support around $4,300

The technical picture, however, shows XAU/USD consolidating recent losses just under the 200-day simple moving average (SMA) at $4,538.25, leaving the near-term tone capped, with momentum indicators in the daily chart showing a neutral-to-bearish trend. The Relative Strength Index (14) hovers around the 50 midline, and the Moving Average Convergence Divergence (MACD) remains below zero in line with a depressed histogram.

Upside attempts remain capped below Tuesday's and Wednesday's highs near $4,440, ahead of last week's highs around $4,500 and the mentioned 200-day SMA, now at $4,538.

Bearish attempts, on the contrary, are expected to be tested at the intraweek lows in the mid-$4,300s, which, so far, are closing the path towards the area between $4,311 and $4,282, the August 14 and September 2 lows, respectively, which is the neckline of a bearish Head & Shoulders (H&S) pattern.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

On the upside, a trade through the August 28 main top at $71.18 will reaffirm the uptrend. Taking out the June 17 main top at $71.56 will be a sign that the uptrend is strengthening. Furthermore, swing chart analysis indicates the next area to watch will be $77.01 and $78.83 from June 2 and May 25, respectively.

The short-term range is $71.18 to $63.31. Spot silver is currently trading inside its retracement zone at $67.25 to $68.17. Trader reaction to this zone is likely to determine the direction of the market today.

A sustained move over the 61.8% level at $68.17 could indicate the presence of buyers. If this move creates enough near-term momentum, the market could test $71.18 to $72.97, which is the main top and the 200-day MA, respectively.

On the downside, a sustained move under the 50% price could be a sign of near-term weakness. This could lead to a test of a minor 50% level at $65.60, followed by the two main bottoms at $63.31 and $62.56. The 50-day MA at $62.57 could also be put in play.

What to Watch The Producer Price Index at 12:30 GMT gets the first shot at the Fed trade. Treasury yields and the dollar are the two markets to watch after the number prints. The 10-year has been running at its highest since October 2023. The dollar has not followed it higher. The PPI decides whether that gap closes or stays open heading into Friday’s Consumer Price Index.

The bias ahead of the number is bullish and gets stronger if $68.17 is taken out with conviction. The retracement zone at $67.25 to $68.17 is the near-term battleground. A sustained move through $68.17 builds the momentum for a run at $71.18 and the 200-day moving average at $72.97. The trend weakens if buyers cannot hold $67.25. A failure of $63.31 changes the main trend to down and takes the bullish call off the table.

More Information in our Economic Calendar.

August 19 produced one of the year's stranger cross-asset rallies. Ether jumped 17.5% to $2,253, according to the ETHUSD price history. Silver futures finished 2.79% higher at $65.83 after opening near $63.43, historical market data show. Both moves came as the US Treasury stepped into a stressed corner of the bond market.

The Treasury said it would at least double the maximum size of its liquidity-support buybacks for 10-to-30-year securities, from $2 billion to $4 billion per operation. The change runs from September 9 through November 4, according to the official Treasury announcement. Markets turned against the dollar after the decision, and Ether erased its decline from April's monthly high, Reuters reported.

That made Ethereum vs. silver more than the usual digital versus industrial comparison. Both assets drew support from doubts about the dollar, but each translated those doubts through a different form of scarcity.

One macro signal, two scarcity stories behind ETH vs. XAG

The Treasury described the purchases as liquidity support, not monetary financing. The distinction matters. Buybacks improve trading in older securities but do not reduce the deficit or the amount Washington must finance. The announcement followed a rise in the 30-year Treasury yield to 5.34%, its highest level since 2007. Even after the expansion, the additional purchases remained small beside the $32.2 trillion Treasury market, according to Reuters' analysis of the programme.

Ether responded as the higher-beta scarcity asset. Ethereum's official staking dashboard reported 42.6 million ETH, or 34% of the supply, deposited in staking, while the protocol burns the base transaction fee. The rally also coincided with institutional demand. Farside Investors' fund data show US spot Ether ETFs attracting about $1.41 billion over nine consecutive positive sessions through August 27 and another $102.1 million on August 28.

Silver carries a physical constraint. The World Silver Survey 2026 projects a sixth consecutive market deficit, estimated at 46.3 million ounces. That is the updated annual survey figure. An earlier February forecast cited by Reuters placed the shortfall at 67 million ounces, so the two estimates should not be combined.

Silver remained expensive by long-term standards but far below its January record. A silver price chart shows the fall from the $121.60 high documented by Reuters to the mid-$60s. That decline changed the silver price investment case. Any silver price prediction based only on scarcity misses the repricing. A credible silver price forecast must also reflect industrial demand and real yields.

The ETH/XAG comparison survived, but the correlation did notThe first policy test came quickly. The July PCE price index rose 3.7% year on year, slightly above the 3.6% consensus, and the dollar index advanced to 99.145 on August 26, Reuters reported after the release. Two days later at Jackson Hole, Fed Chair Kevin Warsh called the 2% inflation target "firm" and said inflation remained too high in his official keynote remarks.

Ether nevertheless traded near $2,483 on September 8, while the spot silver price stood at $65.92. The ether price graph showed the clearer continuation of the original move.

That divergence weakens the case for a stable Ethereum vs. silver correlation. The Ethereum vs. Silver Safe Haven case is also uneven. Ether remains tied to crypto liquidity and risk appetite, while silver prices are influenced by industrial demand, substitution, and mine supply. Those competing forces help explain persistent silver price volatility.

What Versus Trade ETH XAG now measuresThe debasement story has not disappeared, but inflation has restored a cost to betting against the dollar. On September 8, markets assigned roughly a 60% probability to a September Fed rate increase, while silver traded at $65.92, according to Reuters' current metals report.

The search query "Should I invest in Ethereum or Silver?" treats the choice as static. For those who trade Ethereum vs. silver, the pair instead measures the strength of the debasement trade. A rising ETH vs. XAG ratio points to crypto liquidity and programmable scarcity. A falling ratio favors physical tightness, defensive demand, or a weaker appetite for digital assets. August opened a shared trade but did not turn Ether and silver into the same asset.

GBP/USD remains stronger for the fourth successive day, trading around 1.3550 during the European hours on Thursday. The pair is maintaining a modest bullish bias as it holds above both the nine- and 50-day Exponential Moving Averages (EMAs). The alignment of short- and medium-term EMAs below price hints at a still constructive trend.

The 14-day Relative Strength Index (RSI) near 54 suggests mildly positive momentum without entering overbought territory, keeping the pair supported on dips rather than overstretched. Moreover, the technical analysis of the daily chart suggests an ongoing bullish bias as the GBP/USD pair is remaining within the ascending channel pattern.

The FXS Fed Sentiment Index is at 125.72, keeping the gauge firmly in hawkish territory well above the neutral 100 line.

The GBP/USD pair may explore the region around the seven-month high of 1.3675, reached on August 21. A break above this level would expose the upper boundary of the ascending channel around 1.3750.

On the downside, the immediate support lies at the nine-day EMA of 1.3542, followed by the lower boundary of the ascending channel around 1.3520 and the 50-day EMA at 1.3492. A sustained break below this confluence support zone would cause a bearish reversal and open the door for the GBP/USD pair to navigate the region around the nine-month low of 1.3140, recorded on June 24.

GBP/USD: Daily Chart(The technical analysis of this story was written with the help of an AI tool. Know more.)

Pound Sterling Price Today The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Australian Dollar.

USDEURGBPJPYCADAUDNZDCHFUSD-0.04%-0.05%0.03%-0.01%0.07%-0.12%-0.00%EUR0.04%-0.01%0.05%0.02%0.11%-0.09%0.03%GBP0.05%0.00%0.10%0.03%0.12%-0.08%0.05%JPY-0.03%-0.05%-0.10%-0.05%0.04%-0.19%-0.03%CAD0.00%-0.02%-0.03%0.05%0.09%-0.12%0.02%AUD-0.07%-0.11%-0.12%-0.04%-0.09%-0.20%-0.05%NZD0.12%0.09%0.08%0.19%0.12%0.20%0.17%CHF0.00%-0.03%-0.05%0.03%-0.02%0.05%-0.17% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

USD/CAD has threatened to break below 1.3770 twice, but buyers have defended the level on both occasions. The pair remains under pressure, although the Canadian dollar has offered little support of its own to accelerate the decline.

Recent moves in USD/JPY show the importance of the other side of a currency pair. The yen has gained around 1.7% this week against the dollar, supported by expectations of further Bank of Japan tightening. The Canadian dollar does not have the same level of monetarypolicy support.

The Bank of Canada adopted a more cautious tone at its September meeting, acknowledging that upside inflation risks had increased. However, the latest employment report weakened the case for an immediate change in policy. Canadian employment declined by 42,000 in August, against expectations for an increase of around 15,000, reversing part of July’s 75,000 gain. The unemployment rate remained unchanged at 6.4%.

Canada’s next inflation report will provide another important test of the Bank of Canada’s position. A softer reading would reinforce the argument for keeping interest rates unchanged, despite the Bank’s concerns about energy prices and other upside inflation risks.

Higher oil prices would normally provide some support for the Canadian dollar. WTI crude approached $96 per barrel as the US-Iran conflict escalated, while Brent moved above $100. However, the Loonie has struggled to benefit, partly because of concerns surrounding Canada’s domestic economy and renewed trade tensions with the United States.

On the daily chart, USD/CAD trades below its 100-day and 200-day moving averages following a firm rejection from the 50% Fibonacci retracement around 1.3865. Buyers have continued to defend the 1.3770 area, but the 200-day moving average could restrict any sustained recovery.

The next major catalyst is Friday’s US Consumer Price Index report. Market’s Expectation is for headline CPI to rise by 0.4% m/m in August, while core CPI is expected to increase by 0.2%.

According to CME FedWatch, markets currently assign a 37.6% probability to the Federal Reserve holding interest rates unchanged in September, while the probability of a 25-basispoint hike stands at 62.4%. A softer-than-expected CPI print could increase the probability of a hold and put further pressure on the US dollar, giving USD/CAD sellers another opportunity to break below 1.3770.

In contrast, a material upside surprise would strengthen the case for higher US interest rates and could push the pair back towards 1.3865 and 1.3890. A result broadly in line with expectations may leave USD/CAD trading between these levels, although the direction of Treasury yields and developments in the US-Iran conflict would remain important.

On the four-hour chart, USD/CAD has traded within a descending channel. Price briefly broke below the channel on August 20, but the move was not sustained, with buyers pushing the pair back inside the structure and towards its upper boundary before sellers regained control.

Positioning ahead of the US CPI release could produce another recovery towards the 1.3865–1.3890 resistance area. That would offer sellers a better level from which to target another move below 1.3770 and, eventually, the previous low around 1.3730.

A sustained break and retest below 1.3730 would place sellers firmly in control and expose the 1.3550 region. However, an upside CPI surprise and a corresponding rise in Treasury yields would weaken the bearish setup and increase the risk of a break above 1.3890.

TL;DR: Markets now price a 71.2% probability of a September RBA hike, with every cited forecaster expecting another increase and disagreeing only on timing — a relative-rate shift that lines up with AUD/NZD’s breakout above 1.2283.

The RBA Debate Is Now About September or November A September RBA hike was still a minority economist call only a week ago. Markets now put the probability at 71.2%, while every forecaster cited here expects another increase and is arguing mainly over whether it comes on September 29 or in November. The important shift is therefore not which meeting wins. It’s that the debate has converged on another hike.

AUD/NZD has made its own move at almost exactly the same time. The cross broke decisively through 1.2283, the May high, and resumed its longer-term advance. The chart can’t tell us that RBA repricing caused the breakout, but the move is consistent with a clear relative-rate shift: expectations for Australian tightening have been revised higher while markets remain reluctant to extend the RBNZ’s latest hike into an equally aggressive path for New Zealand.

Hauser Put Inflation Back at the Center RBA Deputy Governor Andrew Hauser gave markets the clearest reason to reassess the path in his ABC 7.30 interview on Tuesday. “We have one big problem, and that’s inflation,” he said, adding that inflation has stayed above target long enough that the Board will eventually have to decide “that is long enough.”

His warning that the RBA could raise rates sharply “tomorrow” sounded dramatic, but the context matters. Hauser was explaining what the Bank could do if it placed much less weight on full employment, not announcing an imminent shock tightening. He also explained why policy has moved more gradually: “The reason as a board we have decided to take it slowly is to preserve as many jobs in this country as we could.” The message wasn’t that the RBA suddenly wants aggressive tightening. It was that patience with above-target inflation isn’t unlimited.

RBA Assistant Governor Sarah Hunter reinforced that message by highlighting domestic inflation pressure in services, rents, and construction, as well as higher oil prices. Her reference to crude above $90 has already been overtaken by Brent above $100. That doesn’t mechanically strengthen the case for a September move, but it makes the persistence and pass-through of the energy shock more important to the inflation outlook.

Economists Have Moved Toward the Same Destination The forecaster changes show how much the debate has narrowed.

Goldman Sachs economist Andrew Boak now favors September after previously assigning it only a 45% probability and leaning toward November. His explanation directly links the two forces driving this week’s repricing: “[The] hawkish commentary, together with our commodity team’s upgraded oil price forecasts, now makes September the most likely timing in our view.” Macquarie economist Ric Deverell also prefers September. His argument is that the 75bp of tightening delivered this year is slowing activity, but the labor market still points to limited spare capacity.

Westpac Chief Economist Luci Ellis and RBC economist Robert Thompson reach the same destination but prefer November, largely because they want stronger inflation confirmation. Ellis has warned against “overreacting to a noisy monthly” inflation print, while Thompson places greater weight on quarterly inflation data.

That’s the distinction worth preserving. Goldman and Macquarie are arguing for September. Westpac and RBC are arguing for November. None of the cited forecasters is arguing that the RBA is finished.

Oil Is Only Half the Inflation Story Brent above $100 provides the obvious external pressure. The renewed Iran conflict has lifted energy costs, with Australian petrol prices approaching $2.10 a litre and diesel above $2.50. If those costs persist, they can work through transport, production, and household expenses rather than remaining an isolated commodity move.

But Australia also has a separate domestic capacity problem. AI-related datacentre investment is adding demand to a construction sector already trying to deliver housing and infrastructure with limited labor and material capacity. That’s not the same inflation mechanism as oil — one is an imported cost shock, the other is domestic demand pressing against supply constraints.

Weak productivity makes the combination more difficult. Without stronger productivity growth, the economy has less scope to absorb additional demand without generating price pressure. That helps explain why hawkish RBA rhetoric can coexist with weak sentiment surveys: consumers may feel strained, but that doesn’t necessarily mean economy-wide inflation pressure has disappeared.

The Market Is Pricing More Than One Move The September numbers are now difficult to dismiss. Markets assign a 71.2% probability to a 25bp hike from 4.35% to 4.60%. That produces an implied post-meeting rate of around 4.53%, which simply represents the probability-weighted average of hike and hold outcomes.

More interestingly, the curve keeps tightening beyond September. By November 2, markets price roughly 1.18 cumulative hikes. By December 7, that reaches about 1.48. The path then extends gradually toward around 2.1 cumulative hikes by August 2027.

So the market isn’t merely betting the RBA might squeeze in one final move. It’s allowing for a measured extension of the tightening cycle.

ActionForex’s Technical View on AUD/NZD: Finally Clearing 1.2283 The AUD/NZD chart fits that relative-policy shift unusually well. The pair spent months below 1.2283, the May high, before breaking through it this week. Price is now around 1.23, with daily MACD accelerating strongly above zero and RSI at approximately 73.78. That’s a powerful breakout configuration, but the daily chart is also clearly overbought, so some consolidation would be entirely consistent with the bullish structure.

The weekly picture gives the move more room. Weekly RSI is around 64.25, well below the daily reading, while weekly MACD has turned higher again above zero. That suggests a short-term pause would be better viewed as a timeframe issue than immediate evidence the broader trend has exhausted itself.

The key near-term support is 1.2211. As long as it holds, the breakout remains intact. A break below would risk a deeper retreat toward the rising 55-day EMA before the larger uptrend can attempt to resume.

The Next Zone Is 1.2534–1.2608 Above current levels, the chart has two closely aligned projection targets. The first is 1.2534, the 38.2% projection of the 1.0649–1.2283 rise measured from 1.1910. The second is 1.2608, the 161.8% projection of the 1.0278–1.1489 advance measured from 1.0649. That makes 1.2534–1.2608 the next major upside zone.

There’s also a reason to treat it with respect. Under the current wave count, the rise from 1.0649 is the fifth wave of the entire advance from the 0.9992 low established in 2020. Momentum remains firmly bullish, but the larger structure could become mature as the pair moves toward those projections.

That creates the same balance seen in the RBA debate itself. The direction is clearer than it was a week ago, but the path still matters. Markets have moved decisively toward another RBA hike, while AUD/NZD has broken out in a way consistent with that relative-rate repricing. As long as 1.2211 holds, the next question is how much of that shift can carry the cross toward 1.2534–1.2608 before the increasingly mature uptrend demands a larger pause.

Key Takeaways Markets now price a 71.2% probability of a September RBA hike, up sharply from a minority economist view just a week ago; every cited forecaster expects a hike, disagreeing only on timing. Hauser and Hunter’s comments reframed the debate around inflation persistence, not urgency, with Hunter also citing higher oil prices now compounded by Brent above $100. Goldman Sachs and Macquarie favor September; Westpac and RBC favor November for stronger inflation confirmation — but none of the four expects the tightening cycle to be over. Beyond September, markets price roughly 1.18 cumulative hikes by November 2 and 1.48 by December 7, extending toward about 2.1 by August 2027. AUD/NZD has broken above 1.2283 resistance, with 1.2211 as key near-term support and 1.2534-1.2608 as the next major upside zone, though the daily chart is overbought.

ActionForex

ActionForex.com was set up back in 2004 with the aim to provide insightful analysis to forex traders, serving the trading community for two decades. We started providing only a daily and a mid-day report, now known as Action Insights. Gradually, we added a lot more in-house contents to the site. Technical Outlook section was expanded to cover more pairs. In addition to that, Top Movers, Heat Map, Pivot Point Charts and Pivot Meters, Action Bias and Volatility Charts, are tools used by traders from all over the world.

Commerzbank’s Michael Pfister notes that markets fully price today’s ECB rate hike and see around 85 basis points of additional tightening by mid-2027, heavily driven by Oil dynamics. He argues this leaves little room for the ECB to meet expectations, making a clearly hawkish surprise necessary for Euro strength, while any disappointment could weigh on EUR/USD.

High expectations constrain euro upside"There is little doubt that the ECB will announce its second interest rate rise of the year today. This outcome is priced in at 100%, and almost all of the economists surveyed by Bloomberg (including ours) are expecting it. The actual interest rate decision is thus likely to be of virtually no significance for the euro."

"The recent rise in oil prices has led to expectations of more than two further interest rate rises by the middle of next year (with a total increase of 85 basis points priced in), with an additional 25 basis points being priced in over the last week alone. As we have often pointed out, expectations of ECB interest rate rises depend heavily on the oil price. But these high expectations are making it increasingly unlikely that the ECB will be able to meet them."

"Even if the ECB and its president, Christine Lagarde, were intent on delivering so many interest rate rises (which would already be ambitious), officials would certainly not want to commit to this today. Instead, they are likely to wait and see how the situation in the Middle East develops and what further price pressures lie ahead. In short, achieving a positive outcome for the euro is likely to be very difficult."

"The risks are thus rather asymmetrically distributed today: for a stronger euro, the ECB would have to adopt a very hawkish stance, whereas for a weaker euro, it would only need to disappoint the market's advanced expectations."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

By

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Published: Sep 10, 2026, 08:16 GMT+00:00

$1.35474

-0.02%

DXY struggles despite higher Treasury yields as traders await U.S. PPI and the ECB decision, while EUR/USD and GBP/USD hold bullish support.

GBP/USD

-0.02%

GBP/USD ForecastEUR/USD

+0.03%

EUR/USD ForecastDollar Index Outlook: Dollar Struggles as ECB Hike Looms and Oil Shock Lifts Global Inflation Risk The U.S. dollar remains flat amid higher treasury yields driven by soaring energy costs. With Brent crude topping $100, worries of inflation across the globe are coming back, with the U.S. 10-year yield climbing to a 2023 high. That said, the dollar has remained unchanged, demonstrating lack of interest from investors to add long positions before the release of the upcoming US inflation data and next week’s FOMC meeting.

The U.S. data on tap to influence markets is the Producer Price Index (PPI) today and Consumer Price Index (CPI) on Friday. The market currently puts odds at around 60% that the Fed may hike at its next meeting on Wednesday, following strong labor market data and increased energy shock. The energy crisis may also bring inflation concerns to investors, while the data may be weaker and may even lead market analysts to turn less hawkish.

The euro zone also remains front and center. The ECB is going to hike rates by 25 bps today and mail the deposit rate at 2.50%. The consensus in the market is that the ECB will not hike again this year. Euro zone inflation was at 3.3% in August, and pressure on energy prices is building, with Deutsche Bank calling for a December rate hike.

Sterling remains subdued. The Bank of England is more cautious than its peers. There is a high consensus in the market that the BoE will hold rates on September 17. 57 of the economists polled in the REUTERS survey expect the BoE to hold for the remainder of the year. Energy concerns are high, and wage and price inflation are still muted.

As indicated in the chart, tightening by the ECB contrasts with the Fed’s data dependency and the BoE’s wait-and-see approach.

Fundamental bias: DXY neutral-to-bearish, EUR moderately bullish, GBP neutral.

U.S. Dollar Index Technical Analysis: DXY Stays Below 98.90 as Sellers Keep Control Dollar Index Price Chart – Source: Tradingview On the 2-hour chart, USDX resides around 98.74, and what captures my interest is that price respects the descending trendline and remains below both moving averages. Price failed to close above 98.90 more than once, implying that there are sellers defending rebounds from forming a meaningful trend reversal.

First, I watch 98.60. A break of the support zone would take price down to 98.46 and 98.28. 98.90 becomes the first zone of resistance, and price would be considered bullish if it were to break that zone. 99.05 and 99.21 become important zones of resistance should the bulls control price action.

RSI remains in territory implying price action remains weak. I am therefore leaning bearish until 98.90 is successfully challenged and USDX is above 99.05. Closing above 99.21 would then negate this bearish thesis. Until then I favor price action moving down to 98.60.

GBP/USD Technical Analysis: Sterling Holds Above 1.3526 as Rising Trendline Supports Recovery GBP/USD Price Chart – Source: Tradingview GBP/USD is currently trading at 1.3551 on the 2 hour frame. What I have noted is that pound buyers are defending the rising trendline and keeping the price above the 1.3526 support area. The pair is also trading sideways around the moving averages which indicates that the recovery is holding and has some base, however, there is not much recovery momentum.

The first resistance is around 1.3565. A break above that would open 1.3599 and further areas at 1.3623 and the resistance area at 1.3654. For now, the 1.3526 area is the main support. Below that there are supports at 1.3504 and 1.3475 for now, but these would be more important if the pound buyers were to lose control.

I am still slightly bullish as it is trading around the 1.3526 support area and the rising trendline. A break below 1.3475 would require me to distract from the long bias, whereas a break above 1.3565 would justify a stronger bullish view.

EUR/USD Technical Analysis: Euro Holds Rising Trendline as 1.1642 Breakout Comes Into Focus EUR/USD Price Chart – Source: Tradingview EUR/USD is trading at 1.1638 on the two-hour chart. Price is building higher lows within the rising trendline and is trading above both moving averages. The structure is there, but buyers trading within this pattern need to clear 1.1642 in order to continue the upward trend.

I’m watching the first resistance level on the chart at 1.1642. A break above this level would show the next resistance levels at 1.1660, 1.1679, and 1.1700. Potential support levels in the event a rising trendline is broken and the price begins to drop are 1.1607, 1.1586, and 1.1566 in that order.

The RSI is trending in the upper half of its range meaning there is a bullish bias. I am bullish and will maintain this position as long as EUR/USD is above 1.1607. A sustained 2 hour candle break above 1.1642 would support the next level of potential resistance at 1.1660 and 1.1679. A break below 1.1586 would discount the resistance levels above.

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Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

Latest news and analysis

Bond markets are already alluding to this possibility. Benchmark U.S. Treasury yields have moved to their highest levels for 2023. This is due to escalating energy costs which is helping to fan inflation concerns. This also provides a good counterbalance to the dollar weakening and the support for gold.

Geopolitics is helping to maintain demand as well. Iran said that it attacked 10 ships in the Strait of Hormuz, following the U.S. sinking five Iranian oil tankers, which has been the largest attack on shipping during the 6-month conflict. This is helping to create a supply disruption of Middle Eastern oil which is helping to create a safe-haven demand while increasing the concerns of inflation.

Gold also has demand from the U.S. fiscal sustainability concerns after the federal debt eclipsed forty trillion dollars for the first time last month. ANZ said that fiscal pressures are creating doubt in the U.S. government’s ability to service their debts and maintain their currency.

For silver, the backdrop is a strong monetary environment coupled with a tight physical market. The Silver Institute forecasts a sixth consecutive annual deficit in 2026. Stocks have drawn down by 762 million ounces since 2021. Despite an anticipated increase in investment demand for silver in the bar and coin form of 18%, a slowdown in industrial demand will likely slow the growth.

Fundamental bias: We are moderately bullish on gold and silver, and near term U.S. PPI and CPI will be most important.

Gold Technical Analysis: XAU/USD Stalls Below $4,422 as Descending Trendline Keeps Bulls in Check

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The Pound-Dollar rate could come under pressure if US inflation accelerates, while weak UK GDP may leave Sterling vulnerable heading into the weekend. The Pound US Dollar (GBP/USD) exchange rate ticked higher on Wednesday as demand for the ‘Greenback’ was tempered by wider currency trends.

At the time of writing, GBP/USD was trading at around $1.3559. Up roughly 0.2% from Wednesday’s opening levels.

Latest — Exchange Rates:

Pound to Dollar (GBP/USD): 1.35483 (+0.04%)

Euro to Dollar (EUR/USD): 1.164459 (+0.15%)

Dollar to Yen (USD/JPY): 153.36953 (-0.08%)

DAILY RECAP:

The US Dollar (USD) faced headwinds on Wednesday as continued strength in the Japanese Yen weighed on demand for the ‘Greenback’.

The Yen climbed to a seven-month high against the US Dollar as expectations for a Bank of Japan (BoJ) rate hike strengthened, while the prospect of further Japanese policy tightening encouraged investors to unwind Yen-funded carry trades.

The Dollar was also being undermined by a cautious mood ahead of Friday’s US consumer price index as August’s inflation figures could prove pivotal for the Federal Reserve’s September policy decision, with markets currently pricing around a 60% probability of a 25-basis-point rate hike.

A softer-than-expected reading could see those expectations pared back, particularly after Fed Governor Christopher Waller recently indicated that he would favour leaving rates unchanged if there are signs that inflation is easing.

While able to tick up against the US Dollar, the Pound (GBP) was subdued against most of its other peers on Wednesday as surging energy prices revived domestic inflation anxieties.

Wholesale natural gas contracts in the UK spiked to their highest levels since 2022, driven by ongoing geopolitical instability across the Middle East.

Although mounting price pressures bolster the case for the Bank of England (BoE) to lift interest rates later in the year, markets appeared more unsettled by what this means for households.

GBP investors worry that a renewed squeeze on personal finances will paralyse consumer activity and derail the UK's broader economic momentum over the months ahead.

Near-Term GBP/USD Forecast: Robust US Inflation Figures to Lift the 'Greenback'? Looking ahead to Thursday's session, movement in the Pound to US Dollar (GBP/USD) exchange rate is likely to be driven by the latest US inflation figures.

Thursday’s producer price index is expected to report that factory-gate prices began to accelerate again in August.

This could set expectations for Friday’s more influential CPI data, strengthening the ‘Greenback’ if it signals inflationary pressures continue to build.

Meanwhile, the focus for GBP investors in the second half of the week will be the publication of the UK’s latest GDP figures on Friday.

Consensus estimates suggest that month-on-month economic activity ground to a halt in July, which could place fresh pressure on Sterling heading into the weekend.

Exchange Rates UK Research Our currency coverage draws on live market data, official economic releases and published bank research.

Silver (XAG/USD) struggles to capitalize on a modest intraday uptick to the $68.00 neighborhood and trades near the lower end of its daily range during the early European session on Thursday. The white metal, however, remains within striking distance of a nearly two-week high, touched on Wednesday, as traders keenly await the release of US inflation figures.

The US Producer Price Index (PPI) report will be released later today, while the US Consumer Price Index (CPI) is due on Friday. The crucial US data will be looked at for more cues about the Federal Reserve's (Fed) policy path, which, in turn, will influence the US Dollar (USD) price dynamics and drive the USD-denominated commodities, including the XAG/USD.

From a technical perspective, the white metal remains confined in a familiar range held over the past two weeks or so and, so far, has been struggling to build on its momentum above the 100-period Simple Moving Average (SMA) on the 4-hour chart. That said, supportive momentum indicators suggest that buyers retain control as long as pullbacks stay limited.

In fact, the Relative Strength Index (RSI) is hovering in the high-50s, and the Moving Average Convergence Divergence (MACD) is maintaining positive territory. However, a sustained strength beyond $68.00 is needed to back the case for a further near-term appreciating move toward the $70.00 psychological mark en route to the August swing high, above $71.00

On the downside, immediate support is seen near x$65.40-$65.30 or the lower boundary of the trading range. A convincing break below would shift the near-term bias in favor of bearish traders and expose the monthly swing low, around the $63.35-$63.30 region. The downward trajectory could drag XAG/USD further below $63.00, to the 62.20 support zone.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

XAG/USD 4-hour chart

Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.