Silver Prices Also Under Pressure, Market Awaits New Signals from the Dollar and the Fed
Global silver prices weakened on Thursday (October 30th), amid pressure from a strengthening US dollar and market expectations regarding the Federal Reserve's (Fed) next policy direction. This precious metal received support from industrial demand and global supply concerns.
According to Investing.com data, the spot silver price was around US$47.52 per troy ounce, down around 0.6% compared to the previous session. This decline occurred as the US dollar strengthened, which again attracted investor interest after US government bond yields rose following statements by Fed officials suggesting a cautious approach to continuing the interest rate cut cycle.
"Investors are starting to hold back because there are no clear new signals from the Fed. The stabilizing dollar has caused a slight correction in silver prices," said Edward Moya, a precious metals analyst at FXEmpire, as quoted on Tuesday.
On the other hand, the medium-term outlook for silver is still considered positive due to increasing demand from the industrial sector, particularly for solar panels, electric vehicles, and semiconductors. A report from the International Energy Agency (IEA) estimates that industrial silver demand could increase by up to 20% by 2026, in line with the global energy transition. However, analysts warn that excessively rapid price increases in recent weeks have the potential to trigger profit-taking.
Technically, silver prices are still facing short-term pressure. The 50-day exponential moving average (EMA) shows a weakening trend, with immediate resistance at US$49.00 and strong support around US$46.00 per troy ounce. If the price breaks below this area, further declines to US$45.50 remain potential. Conversely, a break above US$49 could trigger a rebound to the US$50–US$51 range.
"Technical momentum is currently somewhat negative, but the medium-term structure remains healthy as long as prices do not fall below US$46," stated the DailyForex report.
Overall, the silver market is currently in a consolidation phase with a neutral to slightly bearish bias.
Source: Newsmaker.id
