Silver Market Update

During Wednesday’s Asian trading session, silver (XAG/USD) showed a positive trend, seeking to continue its rebound from the mid-$45.00 range—the lowest it’s been since September 25th. Currently, it’s up by 0.80%, fluctuating between $47.45 and $47.50. However, there seems to be a lack of strong bullish enthusiasm as traders await the upcoming FOMC interest rate decision.

From a technical standpoint, XAG/USD found solid support around the 50-day exponential moving average on Tuesday, which aligns with the 50% Fibonacci retracement level from the recent August-October bull market surge. The recent upswing implies that the earlier pullback from this month’s all-time highs may be over. Yet, there are signs, particularly from the daily oscillator, that indicate some emerging negative momentum.

If the price manages to push above $48.00, it might attract some profit-taking sellers and face significant resistance in the $48.65 to $48.70 range. However, if buying pressure persists above $49.00, it could change the current bearish sentiment, leading to a wave of short covering. In that case, XAG/USD might aim for stronger resistance at $49.45 before attempting to reach that pivotal $50.00 mark.

On the downside, the area around $47.00 to $46.95 is currently providing some protection. If the price breaks below this zone, it could see a drop under $46.00 and revisit the overnight low near $45.55. A convincing dip below this point could trigger further selling, potentially pushing silver down to the psychological level of $45.00, and possibly lower to $44.45, $44.00, and the $43.55 area, which corresponds to the 61.8% Fibonacci level.