Silver Steadies as Fed Rate Hike Expectations Ease
Silver (XAG) is currently trading at $61.62, up 0.92% for the day, hovering near the upper end of its current trading range. The metal is positioned above its short- and medium-term moving averages but still faces resistance from longer-term trends.
The recent rise in silver prices is attributed to declining expectations of a Federal Reserve rate hike, which reduces upward pressure on the dollar and makes non-yielding assets like silver more attractive. Additionally, geopolitical tensions in the Middle East are driving risk aversion, boosting demand for safe-haven precious metals.
Technical indicators suggest silver is trading with weak momentum. On the H4 timeframe, XAG is above the MA-20 and MA-50 but below the MA-200 on the daily chart. Key support is at $60.92, while resistance is around $62.68. The RSI stands at 48.84, and several indicators, including MACD and CCI, are signaling a sell, while others remain neutral.
Over the next 2-3 trading days, silver is expected to stay within a range of $60.56 to $62.68. There is a 55% probability of a downside move and a 45% chance of a break higher. The market remains cautious, with potential volatility if either the resistance or support levels are breached.