Silver (XAG) Rises on Optimism of Potential US Interest Rate Cut
Silver prices rose on Tuesday, supported by optimism over a potential U.S. Federal Reserve rate cut in December and a weakening dollar. The metal traded above a key pivot at $31, which sparked buying interest and short covering. However, the rally faces resistance levels that could limit gains in the near term.
The market is increasingly pricing in a 73% probability of a 25-basis-point rate cut at the Federal Reserve’s December meeting, up from 66% on Monday. This sentiment followed comments from Fed Governor Christopher Waller, who expressed support for easing monetary policy due to inflation trends. UBS expects an additional 100 basis points of cuts through 2025, further enhancing the appeal of non-yielding assets like silver.
The benchmark 10-year Treasury yield, while ticking up slightly, remains near its lowest level since October, while the U.S. dollar fell 0.2%. These factors combined to make silver more attractive to investors seeking a hedge against economic uncertainties.
Silver is currently up 1.7% at $31,022/Toz.
RECOMMENDATION
- Buy if price moves at least to $31,172
- Sell if price moves at least around $30,872
Resistance Level 2: $31,542
Resistance Level 1: $31, 347
Support Level 1: $30,697
Support Level 2: $30,502
DISCLAIMER
Note: This article is only an analysis and not a definitive reference. Pay attention to the development of fundamental and technical aspects in trading before making an investment decision.
Source: newsmaker
