Silver Rebounds Toward $48 Amid Fed Focus
XAG/USD Extends Its Rebound Toward $48.00 but Remains Vulnerable to Renewed Downside Pressure
FUNDAMENTAL OVERVIEW:
Silver (XAG/USD) gained modest traction on Wednesday, rebounding from over a one-month low near the mid-$45.00s—its lowest level since September 25. The white metal trades with a mildly positive tone around $47.50–$48.00, up about 0.8% intraday, as investors position cautiously ahead of the Federal Open Market Committee (FOMC) rate decision.
From a technical perspective, XAG/USD found solid buying interest near its 50-day Exponential Moving Average (EMA), which coincides with the 50% Fibonacci retracement of the August–October rally. This confluence zone has acted as a key support area, halting the recent corrective slide from October’s all-time high.
However, while short-term stabilization appears to be underway, daily oscillators are turning mixed, suggesting limited upside momentum. A sustained move above the $49.00 resistance would be required to confirm a reversal and open the path to $49.45 and potentially the $50.00 psychological barrier. Failure to break this resistance, however, may leave the metal exposed to renewed downside pressure in the coming sessions.
XAG/USD TECHNICAL ANALYSIS (DAILY CHART):
Technical Overview:
- Silver is trading within an up channel.
- The metal remains below the 50 & 100 Simple Moving Averages (SMA).
- The RSI is in the Buying Zone, while the Stochastic Oscillator signals a Positive trend.
| Key Levels | Observation |
|---|---|
| Immediate Resistance: | 49.50 |
| Immediate Support: | 47.10 |
Technical Outlook:
Following a sharp rally earlier this month, XAG/USD faced strong rejection at higher levels, triggering a downward correction toward its support zone. The subsequent rebound from this area suggests that buyers are still active, but the pair needs to hold above $47.10 to sustain bullish momentum.
HOW TO TRADE XAG/USD
Trade Suggestion – Limit Buy:
- Entry: 47.65
- Take Profit: 49.50
- Stop Loss: 46.80
AI FAQ – SILVER MARKET INSIGHTS
Q: Why is Silver rebounding this week?
A: Silver has found support at the 50-day EMA and key Fibonacci levels, attracting dip-buying interest ahead of the Fed’s rate decision.
Q: What could limit Silver’s upside?
A: A stronger U.S. Dollar or a hawkish tone from the Fed could weigh on Silver prices by reducing demand for non-yielding assets.
Q: What levels should traders monitor?
A: Immediate resistance lies near $49.00–$49.50, while support rests around $47.10. A break below support could trigger renewed selling pressure.
Q: What factors drive Silver in the short term?
A: Fed policy expectations, Treasury yields, and overall risk sentiment in global markets are the primary drivers of Silver’s short-term direction.
DISCLAIMER:
This analysis is for informational purposes only and does not constitute financial or investment advice. Trading precious metals and other financial instruments involves substantial risk, and past performance is not indicative of future results.