Xagusd Jumps Above Resistance

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Xagusd Jumps Above Resistance

Xag/Usd Jumps Above $31.50, All Eyes On Fed

Silver (XAG/USD) is now back above $31.50 after losing ground on Wednesday. It seems that the Silver (XAG/USD) is now positive, but the investors are vigilant ahead of the Fed's policy decision.

The Fed meeting will cover the monetary policy decision and will likely result in a rate cut. According to the forecast, the rate cut will be around 0.25%, which will lower the policy rate to around 4.50 - 4.75%.

Fed To Cut Rates In November

If November's rate cut materializes, that would be the 2nd rate cut of 2024. The Fed's easing cycle started in September and will continue into the year 2025.

As we approach the Fed's policy meeting, everyone is anxious, and it is showing in the DXY, which is now trading at 104.60 with a bearish bias.

The DXY has already reversed almost half of its rally which was driven by the Trump victory in the US elections. A quick look at the 10Y bond yields shows it has also dropped to 4.41%.

The elephant in the room is the Fed's meeting and Jerome's speech after that. The speech will provide clues on how the Trump victory will affect the outlook for interest rates and inflation.

Trump will likely lower corporate taxes but will also put tough tariffs on imports from different countries. Over the long run, this will drive up inflation, which could hinder the rate-cut policy.

For now, Silver (XAG/USD) is trading above $31.50, with the eyes set on $32.00. After that, the next level is $32.50 which is now acting as a resistance.

On the way down, the White Metal could find support near $31.00 and then $30.00. Below that, the $29.00 support is present, followed by the next one at $22.30.

Silver (XAG/USD) chart shows a RSI reading of 40 which means there's a risk of a bearish move. So, if the RSI slides below the 40.00 handle, it could lead to more downside in the Silver (XAG/USD).

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