FxNews—Silver remained near $31.5 per ounce after the Fed lowered the benchmark rate by 25 basis points to 4.5%-4.75%, as expected. During the press conference, Fed Chair Powell stated that, in the near term, the election “will have no effect” on Fed decisions. Powell also noted that stronger-than-expected economic data has reduced “downside risks” but declined to comment on its impact on December’s policy plans.
Rising U.S. Deficit Fuels Market Hopes for Higher Fed Rates
Still, markets are pricing in a backdrop of higher interest rates by the Federal Reserve as newly elected U.S. presidents’ policies focus on raising tariffs, lowering taxes, and deregulating, fueling expectations of larger deficits and inflation.
Silver fell by over 3% on Wednesday as Donald Trump’s U.S. presidential victory strengthened the dollar and prompted investors to unwind safe-haven gold positions.
Silver Technical Analysis – 11-November-2024
Silver’s uptick momentum from the October 15 low ($30.76) was short-lived. The price pulled back after it neared the September 2024 high at approximately $32.35. As of this writing, XAG/USD trades at approximately $31.5, testing the October 17 low ($31.3) as immediate support.
From a technical perspective, the downtrend would resume if bears close and stabilize the price below the immediate support ($31.35). In this scenario, Silver could revisit the $30.76 support. Furthermore, if the selling pressure exceeds 30.76, the bearish trend will have the potential to extend to the October 8 low at $30.13.
Silver Bullish Scenario
Conversely, the critical resistance level that divides the bear market from the bull market rests at $32.35. If bulls pull silver prices above this critical resistance, the uptick momentum that began yesterday will spread to the October 25 low ($33.1), backed by the 100-period SMA.
- Support: 31.35 / 30.76 / 30.13
- Resistance: 32.35 / 33.1 / 34.25
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
