Silver Weak Near Resistance

 Silver Weak Near Resistance

Silver (Xag/Usd) Weak Near $30.00 Amid Uncertainty

Silver (XAG/USD) is struggling to continue its upside beyond the $30.00 resistance level on Tuesday. Now that the Federal Reserve is expected to lower the rates, the short-term outlook of Silver (XAG/USD) has become positive.

It seems that once the Federal Reserve officially lowers the rate in September, a bullish rally in the Silver (XAG/USD) will follow.

25 Bps Rate Cut Expected From Federal Reserve

Now, the only thing that requires clarity is the size of the rate cut by the Federal Reserve. Some say it will be 25 bps while other group forecasts a rate cut of 50 bps.

If we look at the CME FedWatch tool, there's a 28.5% chance of a 50 bps rate cut in September. While the rest is in favor of a 25 bps rate cut in September.

Meanwhile, Fed Daly is in favor of a 0.25% rate cut and shared these views in a media interview. She also didn't rule out the possibility of an even deeper rate cut if the conditions of the labor market become worse.

The current scenario is not good for the US Dollar, but it is good news for Silver, Gold, and even the stock markets. According to experts, the rate cuts will lower the opportunity cost of investing in Silver and even make it an interesting asset to hold.

If we look at the technical analysis of Silver (XAG/USD), it has staged a strong bounce back and even found fresh demand near $29.16. It seems that the next target for the white metal is around $41.75, the high from 11th July.

Additionally, the 20 EMA is around $29.70, and it also shows an upward slope. This is a sign that more upside is on the cards for Silver (XAG/USD).

The famous momentum indicator RSI (14) is also hovering in the 60 - 80 range. This is a sign that strong bullish momentum is still present in the Silver (XAG/USD).

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