Silver Ready to Surge with Fed Rate Cuts Ahead

FxNews—On Tuesday, silver prices stayed around $32.60 per ounce, close to their lowest point in two weeks. This steady price reflects cautious market sentiments before the much-anticipated U.S. presidential election.

Many in the market believe that if Trump wins, it could encourage investors to take more risks, possibly boosting silver prices. Conversely, a win by Harris might reduce worries about tariffs, which could increase the demand for metals like silver.

Fed Set to Lower Rates by 0.25% This Week

Investors are also waiting for the Federal Reserve’s policy decision later this week. The Fed is widely expected to carefully lower interest rates by 25 basis points, a 0.25% reduction.

Adding to the cautious mood, major economies such as Australia, the U.K., Brazil, Poland, and Norway have upcoming monetary policy decisions. These events contribute to the careful approach seen in the markets.

China Prepares $1.4 Trillion Stimulus to Boost Economy

Meanwhile, attention is being paid to China’s ongoing National People’s Congress. Chinese authorities are expected to announce more details about economic stimulus plans. Media reports suggest that China may introduce a stimulus package exceeding 10 trillion yuan (over $1.4 trillion) to support economic growth.

• Also read: Gasoline Prices Remain High as OPEC Holds Back on Output

Silver Technical Analysis – 5-November-2024

The silver price holds above the ascending trendline of the bullish flag but below the 100-period simple moving average. As for the technical indicators, the Stochastic Oscillator rose from oversold territory, hinting at the bulls’ strengthening. The Awesome Oscillator histogram also changed color to green, backing the Stochastic’s signal.

Overall, the technical indicators suggest that while the primary trend seems bearish, the silver price has the potential to return bullish from $32.35. 

• Good reads: NATGAS Faces Major Resistance with Middle East Calm

XAGUSD Eyes $34.25 If Bulls Break The $33.1 Resistance

The October 25 low at $33.1 is the immediate resistance. From a technical perspective, a new bullish wave would emerge if XAG/USD closes and stabilizes above this resistance. If this scenario unfolds, the next bullish target could be the October 21 high at $34.25.

Please note that the bullish outlook should be invalidated if XAG/USD slips below the immediate support at $32.35. In this case, the downtrend will likely extend to the October 17 low at $31.35.

Silver Support and Resistance Levels – 5-November-2024

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

• Support: 32.35 / 31.35
• Resistance: 33.1 / 34.25