Silver Price Forecast: $49 Resistance Holds as Traders Await Fed Clarity
During the Asian session, Silver (XAG/USD) is trading near $48.70, struggling to break above the $49.20 resistance.
Quick overview
- Silver (XAG/USD) is currently trading around $48.70, facing resistance at $49.20 amid anticipation of Federal Reserve speeches and U.S. economic data.
- The Chicago PMI is expected to show modest improvement in manufacturing activity, but still remains below the expansion threshold.
- Recent pressure on gold and silver prices is attributed to slower demand from India, a major bullion buyer, leading to a seven-week low in domestic prices.
- Market sentiment in the next 24 hours will be crucial, as traders await signals from Fed policymakers that could influence silver's direction.
During the Asian session, Silver (XAG/USD) is trading near $48.70, struggling to break above the $49.20 resistance. Traders seems to brace for a series of Federal Reserve speeches and fresh U.S. economic data later today. The Chicago PMI is forecast at 42.3, up from 40.6 previously, signaling modest improvement in manufacturing activity but still below the expansion threshold.
Earlier this week, gold and silver prices were pressured as India — one of the world’s top physical bullion buyers — reported slower post-festival demand, with domestic prices slipping to a seven-week low.
However, broader market attention remains fixed on the Fed’s next steps after cutting rates to 4.00% on Wednesday. A dovish tone from upcoming remarks by FOMC members Logan, Bostic, and Hammack could reinforce expectations of further easing in December, weakening the U.S. dollar and supporting metals.
If policymakers strike a more cautious tone, signaling inflation risks or slower policy action, precious metals could face near-term consolidation. The next 24 hours will therefore be crucial in shaping market sentiment heading into November’s trading cycle.
[[XAG/USD-graph]]
Silver (XAG/USD) Technical Outlook: Triple Top at $49.20 in Focus
On the 4-hour chart, silver is testing the $49.20 resistance, where a triple top pattern has formed — a sign of fading bullish strength after repeated rejections. The 20-period EMA near $48.15 acts as short-term support, maintaining the broader uptrend structure for now.
The RSI at 56 indicates moderate buying pressure but shows divergence, with price making higher highs while momentum flattens — a potential early warning of a pullback. A break below $48.15 could trigger a correction toward $47.25 and $45.53, aligning with prior liquidity zones.
Candlestick patterns, including recent spinning tops, reveal hesitation at current levels. However, if buyers push through $49.20 with strong volume, a bullish breakout could follow, targeting $50.84 and $52.43 — key Fibonacci extension zones from October’s rally.
Silver (XAG/USD) Trade Setup and Outlook
Traders may consider long positions above $49.30 targeting $50.80–$52.40, with a stop-loss near $48.00. Conversely, short setups below $48.00 could aim for $47.25 and $45.50 if momentum turns.
With Fed speakers and U.S. PMI data likely to inject volatility, silver’s next move hinges on how the market interprets upcoming signals from policymakers — consolidation or the next breakout leg above $50.
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