Silver Tests $42.75 as USD Weakens
XAG/USD pressed near $42.75 resistance early in the European session on Tuesday, approaching its highest level since 2011 amid a weaker US dollar and expectations of a dovish Fed cut. Expectations of a 25 basis point cut dominated market pricing after a multi-day rally pushed silver to a 14-year high.
The DXY is hovering around a two-month low, just above 97, in line with the view that the FOMC (September 16-17) will cut interest rates and signal further rate cuts through the end of the year. Market participants are currently pricing in around 67 basis points of total easing by 2025.
Technically, momentum remains strong but overbought intraday (4-hour RSI >70). A clear break above $42.75 opens the door to $43.00 (psychological) and then a 261.8% extension around $43.50. Immediate support lies at the former resistance level of $42.50; Below that are $42.00 and $41.65.
As long as the USD remains weak and the Fed is moving toward easing, buying pressure during corrections is expected to persist. The main risk: a hawkish surprise from the Fed that strengthens the USD and triggers a rapid pullback. (ayu)
Source: Newsmaker.id
