Silver Bounces as Main Trend Remains Down

Silver prices are edging higher on Tuesday after finding support within a key retracement zone. The move is considered a technical bounce, rather than a meaningful rally. The daily swing chart indicates that the main trend remains down, with a trade through $62.33 needed to signal a resumption of the downtrend.

The 50-day moving average at $62.64 sits within this retracement zone, which ranges from $62.98 to $61.04. Yesterday's low at $62.33 and today's low at $62.56 both landed inside this zone, with the price overcoming the upper level of $62.98.

The market is awaiting Wednesday's Fed decision, with one sentence from Warsh potentially shifting the rate story. Despite inflation expectations remaining firm due to crude prices above $100 and the Saudi pipeline outage, silver has absorbed the worst of these pressures so far.