Silver Price Forecast: Silver/USD Dips Below $69.00 Ahead of Fed Chair's Speech

Silver prices edged lower during Friday's Asian trading session, giving back some of the previous day's gains. As of press time, spot silver was trading near $69.71 per ounce, with market sentiment turning cautious as investors closely monitor the upcoming Federal Reserve Chair's speech to assess future monetary policy direction.

**Dollar Moves and Rate Expectations Dominate Near-Term Direction**

Recent silver price fluctuations have closely tracked changes in the U.S. dollar index and Treasury yields. Earlier, a weaker dollar provided a rebound opportunity for silver, lowering holding costs for overseas buyers. However, as markets recalibrate expectations for Fed rate policy, the dollar's decline has paused, pressuring precious metals prices. Market reports indicate traders are digesting recent mixed economic data while awaiting the Fed Chair's latest remarks for clearer signals on the timing and magnitude of rate cuts. Any hawkish tone could boost the dollar, adding further downside pressure on silver.

**Technical Indicators Show Waning Selling Pressure but Unclear Trend**

From a technical standpoint, the 14-day Relative Strength Index (RSI) is hovering near oversold territory, suggesting short-term selling pressure may be easing. However, no clear directional catalyst has emerged. Analysts note that the recent low area serves as a key support level, and a break below it could open room for further downside. Earlier, following a historic selloff, some veteran commodity analysts warned that this correction may not be over, urging investors to stay alert to the risk of a trend reversal.

**Market Watches Gold/Silver Ratio and Industrial Demand Outlook**

Beyond macro factors, market participants are also monitoring the gold/silver ratio for relative valuation signals. A higher ratio may indicate silver is undervalued relative to gold. Additionally, silver's industrial properties make it highly sensitive to global economic prospects and manufacturing demand. Despite some safe-haven buying driven by geopolitical uncertainties, the rebound in silver prices remains limited amid a broader cautious risk appetite. Going forward, upcoming U.S. inflation and employment data will be key variables influencing the Fed's policy path and market sentiment.