Silver Price Forecast: XAG/USD Nears $32 Hurdle Amid Fed Rate Cut Speculation
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- Silver gains 0.19%, stabilizing at $31.89 as traders anticipate key U.S. inflation figures and Fed's next steps.
- Technical analysis highlights consolidation near the $32 mark, with $31.75 acting as crucial support.
- Potential downside risks include a fall towards the $31.00 area and the 100-day SMA at $30.47 if bearish pressure mounts.
Silver price climbed some 0.19% on Tuesday yet failed to clear the $32.00 hurdle after hitting a three-week high of $32.27 at the beginning of the week. At the time of writing, XAG/USD trades at $31.89 as Wednesday’s Asian Pacific session commences.
Mounting speculation about a potential Federal Reserve interest rate cut next week is driving market sentiment. The release of US inflation data on Wednesday is expected to provide clearer insights into the Fed’s monetary policy trajectory.
XAG/USD Price Forecast: Technical outlook
After briefly climbing above $32.00, XAG/USD retreated and is now consolidating within the $31.75–$32.00 range, with the 50-day Simple Moving Average (SMA) at $31.75 serving as key support.
The price action suggests the formation of a "double bottom" chart pattern, which remains just short of its minimum target of $33.50. A decisive break above the $32.00 resistance level could strengthen bullish momentum, paving the way toward $33.00 and ultimately the "double bottom" target.
On the other hand, if XAG/USD falls below the 50-day SMA, sellers may gain control, potentially driving prices toward the low $31.00 range. A further decline past this level could bring the 100-day SMA at $30.47 into focus.
XAG/USD Price Chart – Daily
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