Silver Bulls Cross The 24 Resistance Level

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Silver Bulls Cross The 24 Resistance Level

Silver Bulls Cross The 24.898 Resistance Level

The short-term trend in the XAG/USD is bullish, which tells us that the market is really favouring non-yielding assets such as Silver and Gold. For now, the trading price of Silver (XAG/USD) is 24.974, which is slightly below the daily high, located at 25.015.

If we look at Silver's fundamental outlook, the recent jump in its price came after the release of the inflation data (Core CPI, CPI, Core PPI, & PP). The data have increased the chances of a rate hike halt or even rate cuts from the Federal Reserve.

Rate Cuts Favor The Silver (XAG/USD)

In theory, a rate cut favours the assets such as Gold, Silver, and even cryptocurrencies. And that's exactly what we are seeing in the Silver market as well.

The Silver (XAG/USD) technical outlook also tells us that more growth in price is highly likely. For now, the precious metal is ignoring all the short-term resistance levels as if they don't even exist. This highlights the influx of buyers in the Silver market as the market brace for a possible change in the Fed's policy.

But that also doesn't discount the fact that Silver prices could retreat if the talks of rate cuts don't materialize or the inflation jumps higher again.

For now, failure to form a stable base above 24.898 will likely lead to a sell-off in the Silver Spot market. This would mean that the Silver traders will likely come to the 24.526 level for a retest before staging yet another bullish recovery.

Even if we look outside the FX market, it appears that the US Dollar is on the back foot. So it is not a surprise for the commodities like Silver to also show strength against the US Dollar. Although the Fed will hike the rate one more time, it is mostly priced in as the markets are now looking for what's ahead!

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