Silver Price Rises to $47.50, But Remains Prone to Correction
Silver (XAG/USD) prices rebounded in Wednesday morning's Asian trading session. The precious metal rose around 0.8% to $47.50 after hitting its lowest point in over a month at $45.50. This increase indicates renewed buying interest, although the market remains cautious ahead of the Fed's interest rate decision (FOMC).
Technically, silver found strong support near the 50-day moving average (50-day EMA), which coincides with the 50% Fibonacci level. This suggests that previous selling pressure may be easing. However, daily indicators remain negative, so price gains could be limited in the short term.
If the price breaks through $48.00, silver has the potential to strengthen further toward the $48.65 to $49.00 area. A sustained rise above this level could trigger further buying, bringing the price closer to the $49.45 area and even the psychological $50.00 level. However, many market participants expect this upward movement to face selling pressure around that resistance area.
Conversely, if the price falls below $47.00, silver could weaken again to the $46.00 area or even below $45.55. A drop below that level would be a new negative signal and could drag the price to $45.00 or even closer to the $44.00 area. Given these conditions, traders are advised to remain cautious and wait for confirmation of the direction before taking large positions. (asd)
Source: Newsmaker.id
