Silver Price Forecast: XAG/USD tumbles below $23.00 on upbeat US Q3 GDP data

• Silver price drops sharply below $23.00 after stronger-than-projected US GDP data in the July-September quarter.
• The US economy grew by 4.9% against expectations of 4.2% and the former release of 2.1%.
• Silver price consolidates near the horizontal support plotted near $22.65.

Silver price (XAG/USD) fell sharply below $23.00 after the United States Bureau of Economic Analysis (BEA) reported that the economy grew by 4.9% in the third quarter of 2023 against a 2.1% growth rate recorded in the April-June quarter. Economists anticipated a growth rate of 4.1%.

The appeal for bullions has impacted sharply while the near-term demand for the white metal is still upbeat amid escalating tensions in the Middle East. Israeli Prime Minister Benjamin Netanyahu reiterated on Wednesday that their military troops are preparing for a ground incursion to eliminate Hamas in Gaza with the goal of ‘saving the nation’.

The US Dollar Index (DXY) faces some selling pressure from a two-week high at 106.85. 10-year US Treasury yields edged down to 4.94%. Apart from the US GDP data, Durable Goods Orders for September have also been released. The US Census Bureau has reported that new core goods orders rose significantly by 4.7% against expectations of a 1.5% increase. In August, the economic data contracted by 0.1%.

After the US Q3 GDP data, investors shifted focus to the Fed’s preferred inflation gauge for September, which will be announced on Friday.

Silver technical analysis

Silver price consolidates near the horizontal support plotted from October 19 low at $22.65 on a two-hour scale. The 50-period Exponential Moving Average (EMA) around $23.00 remains sticky to the Silver price, indicating a sideways performance. The Relative Strength Index (RSI) (14) oscillates in the 40.00-60.00 range, which indicates that investors await a potential trigger.

Silver two-hour chart