Silver Holds $37.40 Support as Fed Dissent Signals Market Volatility
Silver is holding above $37.43 support, bouncing from a higher low within a symmetrical triangle. The rebound has stalled...
Quick overview
- Silver is currently above the $37.43 support level, showing a rebound from a higher low within a symmetrical triangle.
- The price has stalled at the 50-period SMA, with mixed momentum indicators suggesting potential short-term pullbacks.
- A break above $38.71 could lead silver to $39.15–$39.52, while a drop below $37.43 could see it fall to $36.97 and $36.40.
- Political pressures and Fed discussions on interest rates are contributing to market volatility, impacting silver's performance.
Silver is holding above $37.43 support, bouncing from a higher low within a symmetrical triangle. The rebound has stalled at the 50-period SMA ($37.80–$37.97) which has capped rallies all month.
Momentum indicators are mixed. The RSI is 57, not overbought, while the MACD is bullish with expanding histogram bars. But candlestick action shows hesitation with wicks at resistance suggesting short term pullbacks.
- Break above $38.71 could take silver to $39.15–$39.52
- Drop below $37.43 could take silver to $36.97 and $36.40
Trade Setup: Conservative traders may wait for a close above $38.71, targeting $39.50 with stops below $37.97. Aggressive players may fade rallies, looking for a retest of $37.43.
Fed Minutes Inflation vs Jobs Debate
Silver is being driven by fundamentals beyond chart patterns. Fed minutes from July showed deep divisions: most policymakers wanted to hold rates steady at 4.25%–4.5% while Governors Waller and Bowman wanted to cut – the first dual dissent in over 30 years.
Officials highlighted the Fed’s two sided risk: sticky inflation from tariffs and weakening employment data. Nonfarm payrolls missed for May, June and July, reinforcing the fear the labor market is slowing down.
This policy tug of war is key for silver. A softer labor market may push the Fed to cut rates, weaken the dollar and lift metals while persistent inflation and tariffs may keep rates high and weigh on non yielding assets like silver.
Political Pressure and Market Impact
Adding to the uncertainty, President Trump has been attacking the Fed, calling Powell “stupid” and demanding immediate cuts. With Adriana Kugler’s resignation, Trump gets another Fed seat to fill, and is now pressuring Governor Lisa Cook to resign. The White House has already identified 11 candidates to replace Powell when his term ends in 2026. This is adding fresh volatility to the markets where metals like silver often act as a hedge against political and economic risk.Before Powell speaks at Jackson Hole, silver is sitting between two converging levels. Will it break out or collapse?
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