Silver Price Forecast: XAG/USD fails to hold above $19.00, falls towards $18.80 on risk-off mood

• Silver price stumbled on risk-aversion as traders turned to cash.
• Fed’s Bullard: Traders understood the Fed’s commitment to tackle inflation.
• NATO expressed that Nord Stream 1 and 2 pipeline attack was caused by sabotage.

Silver price slides for the second time in the week amid falling US Treasury bond yields as Fed officials’ “aggressive” tone, the Europe energy crisis, and UK’s mini-budget presented by Kwasi Kuarteng, UK’s finance minister under Liz Truss government, shifted sentiment sour. Therefore, the XAG/USD is trading at $18.81 a troy ounce, 0.40% below its opening price.

On Thursday, Fed officials led by Regional Fed Presidents, with Cleveland’s Mester and St. Louis Bullard, reiterated that the Federal Reserve is compromised to tackle inflation, even though it could trigger a recession. James Bullard said traders understood that the Fed was serious about achieving the price stability mandate and added the need for higher rates for a “longer period.”

In the meantime, Loreta Mester commented that inflation is the primary concern, added that there is no “case for slowing down,” and foresees rates to peak at around 4.6%.

At the time o typing, the San Francisco Fed Mary Daly said there’s no need to tap the US economy into a recession to curb inflation while adding that “additional interest rates are necessary and appropriate.”

In the meantime, NATO said that the leaks of the Nord Stream pipelines were caused by sabotage and noted that “NATO is committed to deter and defend against hybrid attacks,” and “any deliberate attack against Allies’ critical infrastructure would be met with a united and determined response.”

Although news of the Nord Stream 1 and 2 pipelines spurred a jump in energy prices, WTI and Brent’s crude oil sustained losses of 0.46% and 0.54%, respectively.

Aside from this, the UK’s new Prime Minister Liz Truss, doubled down on its tax-cut budget, saying that she was willing to take “controversial” decisions, though recent reports by the Guardian said that she would hold an emergency meeting with the Office for Budget Responsibility (OBR) on Friday.

Given the fundamental backdrop, XAG/USD prices slid as traders seeking safety preferred to liquidate its positions and braced for cash. Portraying the previously mentioned, US Treasuries remained contained during the session, while the US Dollar Index registered losses of 0.69%, down at 111.040.

Silver (XAG/USD) Key Technical Levels