Silver Price Prediction: Bulls Defend $50.40 as Fed Cut Bets Boost Outlook
Silver (XAG/USD) is trading around $50.87, steadying after a steep drop from its $54.42 peak earlier this month. The metal has found...
Quick overview
- Silver (XAG/USD) is currently trading around $50.87 after a drop from its earlier peak of $54.42, finding support in the $50.40–$50.60 range.
- The formation of a bullish flag pattern suggests potential trend continuation, with a breakout above $51.50 targeting $52.19 and $54.40.
- Traders are advised to consider a buy-on-dip strategy near $50.40–$50.60, with stops below $50.00 and targets set at $54.00–$56.00.
- As inflation concerns ease, there is growing optimism for Silver to reclaim the mid-$50 range, supported by improving liquidity.
Silver (XAG/USD) is trading around $50.87, steadying after a steep drop from its $54.42 peak earlier this month. The metal has found strong buying interest near the $50.40–$50.60 zone — an area reinforced by the ascending channel’s lower boundary on the 4-hour chart. This key region also overlaps with the 20-period EMA, which has consistently provided dynamic support during pullbacks throughout this uptrend.
The recent long-tailed candles highlight persistent demand at these levels, showing that buyers continue to defend the zone despite short-term weakness. The RSI, now hovering near 46, signals that the overbought conditions seen in early November have eased, suggesting the correction phase could be nearing its end.
Bullish Flag Hints at Continuation
Technically, Silver is shaping a bullish flag pattern, often a prelude to trend continuation. While prices consolidate below resistance, the higher-low structure remains intact, indicating underlying strength. A clean breakout above $51.50 could reignite bullish momentum, targeting $52.19, followed by $54.40 — both critical resistance levels where previous rallies paused.
[[XAG/USD-graph]]
However, if bears push the price below $50.40, it could trigger a deeper correction toward $49.06, the midpoint of the October range.
Silver (XAG/USD) – Traders Watch for Breakout Signal
Momentum remains neutral for now, with price action squeezed between the 20-EMA and the upper channel resistance. A confirmed EMA crossover on shorter timeframes, alongside an RSI bounce above 50, would strengthen the case for renewed upside.
For traders, a buy-on-dip strategy near $50.40–$50.60 offers a compelling risk-reward profile, with stops below $50.00 and targets at $54.00–$56.00.
Silver (XAG/USD) Outlook: Optimism Returns to Precious Metals
As inflation concerns cool and expectations for Federal Reserve rate cuts build, investors are rotating back into metals as defensive yet growth-sensitive assets. If this sentiment persists, Silver could reclaim the mid-$50 range in the coming weeks, supported by improving liquidity and a technically sound uptrend.
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