Silver in the $51 Range—Rally Continued or Consolidation?
Silver fluctuated but remained within a high range during Wednesday's European session, following a consecutive rally earlier in the week. Early in Europe, XAG/USD briefly dipped to the $50.84 area before stabilizing at $51.77, as a strengthening dollar curbed the USD-based precious metal. Intraday ranges remain wide following the three-day rally that brought prices near multi-week highs.
From a fundamental perspective, the market is weighing two major trends: signals of weakness in the US labor market, which are increasing bets for a Fed rate cut in December, versus the dollar, which remains entrenched around the 99.5 index, exerting tactical pressure on precious metals. The prospect of an end to the US government shutdown is also expected to restore official data releases and clarify the path of monetary policy, keeping volatility high in the upcoming releases.
Looking ahead, traders are monitoring whether a technical pause triggers buying the dip or deeper consolidation. The structural narrative remains positive: tight physical markets and flows into ETFs caused liquidity tensions on the London-Comex platform last month, supporting prices at the current high levels. Intraday levels to watch: support at $50.9–$51.0 and resistance at $51.8–$52.0; a close above resistance opens the door to a retest of the monthly high, while failure to hold above $51 could trigger a correction towards $50.5.
Source: Newsmaker.id
