Silver (XAG/USD) is trading at $50.80 on Thursday at the time of writing, down 0.70% on the day. The white metal is paring part of the previous weekly advance, after prices briefly tested the $52.00 area before being rejected as the US Dollar (USD) regained strength.
Renewed US dollar strength is weighing on the commodities space, as investors reassess the possibility of the Federal Reserve cutting interest rates again in December. Federal Open Market Committee (FOMC) minutes released on Wednesday revealed significant resistance within the committee to further easing, dampening expectations of additional cuts and reducing the appeal of non-yielding precious metals.
Silver is also affected by the broad market pause ahead of the delayed September Non-Farm Payrolls (NFP) report scheduled for later today. The Bureau of Labor Statistics (BLS) confirmed that the October report will be published with November data due to the government shutdown, reducing overall short-term visibility. Markets will therefore focus on available indicators, including unemployment claims, hourly earnings and participation, which could help shape interest rate expectations ahead of the Fed’s December meeting.
Meanwhile, improved risk appetite following Nvidia’s strong earnings led to a modest shift away from safe-haven assets, weighing on demand for silver.
Technical analysis of silver: XAG/USD is pressing between downward resistance and upward support
Silver 4-hour chart. Source: FXStreet
On the 4-hour chart, XAG/USD is trading at $50.80, down intraday by $0.47 from the opening price. The 100-day simple moving average rises to $49.85, and the price remains above it, indicating fundamental support. The Relative Strength Index (RSI) stands at 47, which is neutral and indicates fading momentum.
The downtrend line from $54.39 is capping gains with resistance near $51.77, while the uptrend line from $45.56 is supporting the price around $49.74. An upper break of the bearish barrier could extend the recovery, while a close below the ascending support level would encourage sellers.
The broader setup remains capped by a downtrend line, while buyers defend rising support. After these lines, resistance is located at $54.39, followed by $54.86, while support is located at $45.56.
(Technical analysis of this story was written with the help of an artificial intelligence tool)
