Silver Rises to $48.6 as Gold Rally and Fed Cut Bets Boost Momentum
Silver (XAG/USD) is following gold higher, trading at $48.62 early Wednesday as investors turn to precious metals amid global uncertainty.
Quick overview
- Silver (XAG/USD) is trading at $48.62, up 42% this year, as investors seek safety in precious metals amid global uncertainty.
- Expectations of rate cuts and a weakening dollar are driving up silver prices, alongside geopolitical tensions and central bank demand.
- Technically, silver is in a bullish trend with support levels indicating potential for further gains, especially if it breaks above $48.80.
- New traders are advised to wait for a confirmed break above $48.80 for a low-risk entry, targeting $49.37 and $49.98.
Silver (XAG/USD) is following gold higher, trading at $48.62 early Wednesday as investors turn to precious metals amid global uncertainty. It’s up 42% this year, just like gold above $4,000, as both are driven by the same macro factors – lower US yields, central bank demand and geopolitical tension.
Traders are expecting another 25-basis-point rate cut this month and another in December. With the US government shutdown ongoing, the dollar is weakening and metals are rising across the board. “Rising uncertainty fuels gains in precious metals and silver is no exception,” says KCM Trade Chief Market Analyst Tim Waterer.
France and Japan’s political instability and global debt expansion has cemented silver’s role as a dual safe-haven and industrial metal. Analysts point to Japan’s new PM Sanae Takaichi and her plan for more fiscal spending as another tailwind for commodities with silver benefiting from its growing use in renewable energy and high-tech manufacturing.
Silver (XAG/USD) Technicals Point to Bullish Continuation
From a technical perspective silver is trending in a well-defined up-channel, printing higher highs and higher lows since mid-September. Price is supported by the 50-SMA at $47.28 and the 100-SMA at $43.53.
Recent candles show a bounce from the mid-channel support at $48.00 with a bullish engulfing candle, indicating buying momentum after a short consolidation. The RSI at 59 suggests there’s still room to go before it gets overbought, so potentially up to the upper channel boundary at $49.98.
If price breaks above $48.77 we could see a move to $49.37 and potentially $50.00, a key psychological level. If it pulls back to $48.00-$47.30 it will likely attract dip buyers to get back in the trend.
Silver (XAG/USD) Trade Setup: How to Position for the Next Move
For new traders, patience and precision is key. Waiting for a confirmed break above $48.80 could be a low risk entry with the trend.
- Entry: Above $48.80 after a strong bullish candle confirmation
- Targets: $49.37 and $49.98
- Stop-loss: Below $47.80
With the fundamentals in favour of safe-haven assets and the technicals looking bullish, silver is following gold – up and steady as investors expect the Fed to continue to weaken the dollar and support the metals long term.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save