Silver Turn Green After Fed Decision

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Silver Turn Green After Fed Decision

Silver (Xag/Usd) Looks Towards $26.00 After Fed Decision

wave of buying was seen across most of the metals, including Silver, after the announcement by the Federal Reserve. The message given by the Fed was dovish which sent the USD and treasury yields lowered.

The DXY was trading near 103.44 with a bearish bias, while the XAG/USD gained 3% and was trading near $25.61 now that the XAG/USD has conquered the $25.50 resistance and turned it into support, the next target for the Silver is $26.00.

Silver Gains 3% Post Fed Announcement

After crossing the $25.50 level, the Silver reached a new high near $25.63. According to technical analysis, the precious metal can gain further upside and even touch the $26.00 level as well. Once these levels are conquered by the bulls, it will open the door to the $26.21 and then the $26.94 - $27.00 level.

But if the sellers take hold of the XAG/USD and send the precious metal under $25.43, it will mean a revisit of the $25.00 once again. If the sellers can clear these levels, it will even leave the $24 handle vulnerable as well.

The sudden buying interest seen in the XAG/USD was followed by the upside seen in Gold and Copper. It appears that even the stock markets across the globe are now printing green as the Federal Reserve's comments were regarded as negative.

On the surface, it appears that the non-yielding status of Silver is now becoming irrelevant as the Federal Reserve is also going to cut rates. However, there's another angle to this whole story - Lower rates will drive up economic activities, which means a greater demand for assets like Gold and Silver.

So, if the year 2024 leads to rate cuts by the Fed, BoC, BoE, and the ECB, it means the long-term trend of Silver will turn positive.

For the most part, several central banks have hinted at rate cuts already in the year 2024. So, based on this assumption, we can say that the Silver can easily go higher.

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