Silver Price Forecast: Bulls Target $50 as Fed Decision and Trade Talks Drive Momentum
Silver (XAG/USD) edged higher to $47.43 on Wednesday during the Asian session. It's extending its rebound from a weekly low of $46.08...
Quick overview
- Silver (XAG/USD) rose to $47.43, recovering from a weekly low as traders anticipate the Federal Reserve's policy decision and a potential U.S.–China trade breakthrough.
- The demand for silver, like gold, has decreased due to improved trade sentiment, but lower expected interest rates may enhance its short-term appeal.
- Technical indicators suggest a potential bullish trend for silver, with a key resistance level at $47.60 that could lead to higher targets if surpassed.
- Traders are advised to consider a long entry above $47.60, while a drop below $46.00 would indicate a bearish trend.
Silver (XAG/USD) edged higher to $47.43 on Wednesday during the Asian session. It’s extending its rebound from a weekly low of $46.08 as traders positioned ahead of the Federal Reserve’s policy decision and renewed optimism over a U.S.–China trade breakthrough. The precious metal’s price recovery mirrors gold’s recent bounce. Both, gold and silver, are reacting to shifting risk sentiment and a softer dollar ahead of Wednesday’s key events.
Silver Mirrors Gold’s Volatile Moves
Just like gold, silver’s safe-haven demand has waned due to improved trade sentiment. Both nations have reportedly finalized a trade framework to be discussed during Thursday’s summit between Presidents Xi and Trump. The prospect of an agreement has lifted equities and reduced investor demand for non-yielding assets such as precious metals. However, with the Federal Funds Rate expected to be cut from 4.25% to 4.00%, silver could regain short-term appeal as lower yields reduce the opportunity cost of holding it.
The U.S. economic calendar is loaded with high-impact releases — including Pending Home Sales, Crude Oil Inventories, and the FOMC Statement and Press Conference. Traders are watching these events closely as government data may face delays due to the ongoing U.S. shutdown, which could heighten volatility across metals and currency markets.
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Silver (XAG/USD) Technical Outlook: Breakout Attempts Gain Traction
On the two-hour timeframe, the XAG/USD pair has violated its descending channel. This is a move that often signals a potential trend reversal. Therefore, the price is consolidating above $47.20, a key pivot level that previously acted as resistance.
Leading indicator, RSI, is holding around 52 which reflect fading bearish pressure. Whereas, the 20-period EMA has flattened, hinting at a possible bullish crossover against the 50-period EMA.
Candlestick formations show a mix of bullish engulfing and spinning top patterns, suggesting renewed buying interest but cautious momentum. If silver secures a close above $47.60, it could open the path toward $49.45 and $50.84, aligning with previous swing highs. Conversely, rejection near resistance could drag the metal back toward $46.00 and $44.95, where the lower boundary of the prior channel offers support.
Silver (XAG/USD) Trade Setup and Near-Term Outlook
For traders, a long entry over $47.60 with targets between $49.40–$50.80 and a stop-loss below $46.80 offers a favorable risk-reward setup. A break below $46.00 would invalidate the bullish structure, signaling that bears remain in control.
Overall, silver’s outlook appears cautiously optimistic heading into November. With the Fed’s rate decision, trade headlines, and a weakening greenback in focus, a sustained breakout could ignite a broader rally — potentially positioning silver for a retest of the $52.40 zone if risk appetite persists.
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