Momentum Slows, Silver's Rise Restrained
Silver fell in today's Asian session, primarily due to a combination of a correction following a sharp rally and a shift in market sentiment to risk-on mode. After silver surged strongly in recent days, fueled by speculation of a Fed rate cut, many market participants opted to take profits as global stock markets and Bitcoin rallied, easing interest in safe-haven assets like silver.
At the same time, stabilizing US bond yields (no longer falling aggressively) reduced the "drive" for precious metals, while concerns about industrial demand from China—amidst problems in the property sector and a growth outlook that has yet to fully recover—made some investors more cautious. This combination of factors triggered short-term selling pressure, resulting in a correction in silver in the Asian session, although the broader trend remains supported by expectations of a more dovish Fed policy stance.
Global silver prices remain strong, trading in the range of US$52–53 per ounce, still gaining momentum from the past few days. Market sentiment is largely driven by the belief that the US Federal Reserve will cut interest rates at its December meeting, following softening economic data and dovish comments from several Fed officials. The potential for lower interest rates has made non-yielding assets like silver once again sought after by investors.
From a technical perspective, the medium-term trend for silver remains bullish. Levels around US$50.40–50.75 have repeatedly acted as support areas and formed the basis for the latest rally. As long as the price remains above this zone, the upward structure remains intact. Below it, the broader area around US$48.50–49.50 serves as further support, considered a reasonable limit for correction within the uptrend, before the market begins to worry about a larger trend change.
On the upside, the market is now eyeing the US$52.50–53.50 area as short-term resistance, with a stronger zone around US$54.00–54.50, which is approaching this year's historical high. If silver can break through and hold above this area with sufficient momentum, there is still room for further upside. However, the price's proximity to the previous peak also makes this area vulnerable to profit-taking, so future movement is expected to remain volatile as the market awaits concrete confirmation of the Fed's policy and the strength of physical demand.
Source: Newsmaker.id
