Silver Near 14-Year High: Will Rate Cut Hopes and Geopolitical Tensions Sustain Bullish Momentum?
Silver (XAGUSD) experienced significant price volatility in the past week, surging to a 14-year high above $44 as anticipation of a US Federal Reserve rate cut and geopolitical tensions boosted demand, before retreating slightly amid cautious Fed outlook and mixed economic signals.
Latest News
-Fed Chair Powell highlighted inflation risks and a weakening labor market, casting uncertainty on monetary policy.-CME markets priced in nearly 90-93% probability of an October Fed rate cut.-President Trump threatened new tariffs on Russia, intensifying global tensions.-India’s silver imports are poised to rise due to strong investment and industrial demand.
Market Trend
-Silver surged to a 14-year high near $44.47.-Fed rate cut expectations fluctuated, supporting early gains but softening later in the week.-Rising geopolitical tensions (Russia-Ukraine) increased safe-haven demand.-Industrial demand and tight supply provided fundamental support.
Indicators
-Price tested and briefly broke above resistance at $44.45 (14-year high), then pulled back below $44.-RSI near overbought territory suggests possible short-term correction.-MACD momentum remains positive, but histogram narrows, signaling possible consolidation.-Strong support seen at $43.00, with resistance at $44.50.
Reference
-Short-term: Hold, watching for consolidation above $43 before new positions.-Medium-term: Accumulate on dips if price sustains above $43, targeting long-term breakouts above $44.50.
