Silver price stalls near $30 amid Fed rate speculations
Silver prices recover above $30.50 as dollar softens, but challenges persist
Silver prices have regained footing above $30.50 per ounce, recovering from earlier losses in the week. This rebound comes as the dollar softened from recent highs, providing breathing room for the precious metal.
However, the path forward remains uncertain, with key economic indicators and broader market trends suggesting potential challenges to sustained bullish momentum.
Earlier this week, silver sharply declined to a six-day low finding support at $30.00 per ounce, a critical psychological level. This drop followed a rejection at the 50-day EMA resistance near $31.50, reinforcing the importance of the $30.00 threshold as a safety net for the metal. Notably, this support level has held firm since September, preventing deeper price slides and aligning with a broader uptrend trendline.
Technical indicators and geopolitics to shape silver outlook
Despite the recent modest recovery, technical indicators suggest further downward pressure. Silver’s Relative Strength Index (RSI) remains below 50, a clear signal of weak bullish momentum. This aligns with investor caution amid a subdued outlook for Federal Reserve interest rate cuts. Markets are currently pricing in a 63% likelihood of a 25-basis-point rate reduction next month. While Fed officials are optimistic about easing inflation and labor market resilience, their preference for gradual monetary adjustments adds a layer of uncertainty.
Adding to the mix, geopolitical concerns such as Trump’s tariff threats and the fragile ceasefire between Israel and Hezbollah weigh on demand for safe-haven assets like silver. Since the start of 2024, silver has surged by 28.51%, a robust performance. Yet, projections indicate modest gains, with prices expected to reach $33.00 by the end of the year
As silver navigates these crossroads of technical and macroeconomic developments, the $30.00 support remains a pivotal level to determine the metal’s near term outlook.
Silver prices are in a challenging phase, dipping over 12% within the past four weeks. The metal now teeters on pivotal technical thresholds, as geopolitical developments weigh heavily.
