Silver price prediction: XAG/USD sustains five-day advance on renewed Fed rate-cut bets
Silver price continued to strengthen on Tuesday, after posting its largest daily gain in nearly a month on Monday. The white metal surged 4.6%, marking its biggest one-day rise since October 13 and a decisive breakout above the $50 psychological level. The rally came as the dollar index paused its three-day decline while traders increased bets on a potential U.S. rate cut in December.
- Silver rallied 4.6% Monday, marking its biggest one-day rise since October 13.
- FedWatch shows 67% chance of December rate cut, supporting sustained bullish sentiment.
- Silver technical support sits near $49.40, aligning with four-hour 20-EMA for buyers.
Market sentiment toward precious metals improved sharply after recent U.S. economic data pointed to cooling conditions. Both private sector employment and consumer sentiment weakened last week, reinforcing expectations that the Federal Reserve could deliver a 25-basis-point rate reduction next month. The CME FedWatch tool now shows a 67% probability of such a move in December, rising to about 80% by January. This shift in rate expectations has weakened the dollar and helped silver attract renewed inflows from investors seeking to hedge against future monetary easing.

Silver price dynamics (Oct - Nov 2025). Source: Tradingview
During Tuesday’s Asian session, silver extended gains to a high of $51.12, up 1.3% intraday, as momentum from Monday’s breakout carried over. However, the rally lost steam during the European session, pulling the price back to around $50.75 while still maintaining a daily gain of 0.55%. This indicates early hesitation near the $51 level, which has emerged as immediate resistance for short-term traders.
U.S. government reopening may reduce safe-haven demand and cap silver risk appetite
Technically, silver’s structure remains bullish after clearing multiple resistance levels in recent sessions. The metal is now on course to close its fifth straight day of gains, supported by strong buying conviction on the daily chart. The RSI continues to hold firmly in bullish territory, suggesting the uptrend still has strength, although short-term pullbacks are possible if profit-taking increases near $51.
The week-to-date performance stands at a 5% gain, while the month-to-date figure has improved to around 4%, highlighting consistent upward momentum since the start of November. That momentum could, however, be tested by renewed optimism surrounding the U.S. government’s reopening progress. Reuters reported that the Senate has moved ahead on a bill to end the federal shutdown, a development that could reduce safe-haven demand for silver if risk appetite strengthens across broader markets.
In the near term, if price continues to soften below $51, support is expected around $49.40 where the 20 EMA on the four-hour chart aligns. That level could serve as a technical cushion for buyers to re-enter the market, especially if the dollar weakens again or Fed officials reiterate dovish remarks in upcoming speeches. A sustained close above $51 would confirm renewed bullish momentum and potentially open the path toward $52.30 as the next upside target.
We discussed how silver gained 3.37% to $50 as traders positioned for potential U.S. rate cuts. Political stability and improved trade sentiment reduced safe-haven flows into precious metals.
Latest XAG/USD News
- Forex
- Crypto