Silver Rebounds to $41.80 as Dollar Weakens
Silver prices (XAG/USD) bounced off $41.20 and returned to the $41.80 area early in the European session, as the US dollar rally began to lose steam amid calmer risk sentiment. This gain pared previous losses and signaled a resurgence of buying interest near intraday support.
The previous day, the precious metal had briefly corrected after a surge following the Fed's decision to cut interest rates by 25 bps. Policy projections (dot plot) also suggested an additional 50 bps rate cut in 2025 and another 25 bps cut in 2026.
However, Jerome Powell's tone was less dovish. He called the cuts a "risk management" measure and emphasized the challenges posed by persistently high price pressures. These remarks briefly boosted the dollar and pressured silver before eventually easing.
Going forward, the direction of XAG/USD will be sensitive to dollar movements and global risk appetite. As long as it remains above $41.20, the chance of a retest of the $41.80–$42.00 area remains open; conversely, further dollar strength could trigger a rapid pullback.
Key points:
XAG/USD bounced to ~$41.80 after touching $41.20.
The Fed cut 25 bps; dot plot: -50 bps (2025) + -25 bps (2026).
Powell is less dovish → The dollar strengthened briefly, pressuring silver.
As long as it remains above $41.20, the short-term bias is neutral–positive.
The next direction is determined by dollar strength and risk sentiment. (ads)
Source: Bloomberg.com
