Silver Gains Above $47.50 on Safe-Haven Demand.
XAG/USD Climbs Above $47.50 Amid Rising Demand for Safe-Haven Assets
FUNDAMENTAL OVERVIEW:
The Silver price (XAG/USD) halted its three-day losing streak on Wednesday, trading near $47.80 per troy ounce during the North American session. The precious metal regained traction as investors sought safety amid a broad global selloff in equities and risk-sensitive assets.
Global stock markets came under renewed pressure following concerns over stretched valuations in AI-related sectors, while top Wall Street bank CEOs issued warnings about potential market corrections, fueling risk aversion and increasing demand for safe-haven assets such as Silver and Gold.
However, upside momentum for Silver remains limited by diminishing expectations of a December rate cut by the U.S. Federal Reserve (Fed). According to the CME FedWatch Tool, traders now assign only a 69% probability to another rate cut in December—down from 90% last week.
Fed Chair Jerome Powell reiterated in last week’s post-meeting press conference that policymakers could adopt a “wait-and-see” approach, especially as official U.S. economic data releases remain delayed amid the ongoing government shutdown.
Meanwhile, improving sentiment over U.S.–China trade relations has also influenced market dynamics. China’s Finance Ministry announced plans to lift select tariffs on U.S. agricultural imports starting November 10, while the White House confirmed that China will remove extra export controls on rare earths and drop investigations into U.S. semiconductor firms. The U.S., in turn, will pause planned tariff hikes, easing trade tensions and partially offsetting safe-haven flows.
XAG/USD TECHNICAL ANALYSIS (CHART OVERVIEW):
Technical Overview:
- Silver is trading within an up channel.
- The metal is below the 20 & 50-period SMAs, suggesting potential consolidation.
- The RSI is in the Bullish Zone, while the Stochastic oscillator indicates a Positive trend.
| Key Levels | Observation |
|---|---|
| Immediate Resistance: | 49.25 |
| Immediate Support: | 46.87 |
Technical Outlook:
After a sharp rally earlier this month, XAG/USD lost momentum and reversed lower, testing its support zone near $46.80. The pair has since shown signs of renewed buying interest, rebounding above $47.50. A sustained move above $48.00 could pave the way for a rally toward $49.45, while failure to hold above $47.00 may expose the next support near $46.30.
HOW TO TRADE XAG/USD
Trade Suggestion – Stop Buy:
- Entry: 47.96
- Take Profit: 49.45
- Stop Loss: 47.29
Trading Insight:
Bullish momentum is gradually recovering, and a break above $48.00 could confirm renewed upside potential. Traders may consider buying on breakout confirmation, with stops below $47.30 to manage downside risk.
AI FAQ – XAG/USD MARKET INSIGHTS
Q: Why is Silver rising today?
A: Silver is gaining as investors shift to safe-haven assets amid a global equity selloff and renewed risk aversion.
Q: What’s limiting the upside?
A: Reduced expectations for a December Fed rate cut and improving U.S.–China trade relations are capping gains.
Q: What’s the key resistance to watch?
A: The next major resistance is near $49.25, followed by the psychological $50.00 level.
Q: What could trigger a pullback?
A: Improved market sentiment or stronger U.S. Dollar demand could lead to renewed selling pressure.
DISCLAIMER:
This report is for informational purposes only and does not constitute investment advice. Trading commodities and forex involves substantial risk, and past performance is not indicative of future results.