Silver (XAG/USD) traded around $61.50 on Tuesday, marking a 0.75% gain for the day, as the metal found support from a pullback in the US Dollar and US Treasury yields. Despite this intraday bounce, Silver remained confined within a narrow range, with technical resistance and fundamental headwinds limiting further upside momentum [1].
US Treasury yields, while retreating on Tuesday, stayed near multi-year highs, which increases the opportunity cost of holding non-yielding assets like Silver. Persistent inflation risks have kept the Federal Reserve leaning toward further monetary tightening to achieve its 2% inflation target. However, recent softer-than-expected US employment and inflation data have reduced expectations for a rate hike at the October 27-28 meeting, though traders still anticipate one additional rate hike this year, most likely in December. Market participants are now awaiting the Federal Open Market Committee (FOMC) meeting minutes, due on Wednesday, for further guidance on the Fed's policy outlook [1].
From a technical perspective, XAG/USD is trading between $60 and $62, below the 50-, 100-, and 200-day Simple Moving Averages (SMAs) and the 61.8% Fibonacci retracement at $62.13. The Relative Strength Index (RSI) stands at 43, indicating neutral-to-soft momentum, while the MACD indicator remains negative, suggesting that rallies are likely to encounter selling pressure rather than signal a sustained bullish reversal. Key resistance levels are identified at $62 (range ceiling and 61.8% retracement), $63.84 (50.0% retracement), $64.20 (50-day SMA), and $64.45 (100-day SMA). On the downside, support is seen at the $60 psychological level and the 78.6% Fibonacci retracement at $59.68, with a break below potentially exposing the cycle low near $56.57 [1].
CONCLUSION
Silver prices remain range-bound, with technical and fundamental factors capping gains despite a modest intraday rise. Market participants are closely watching upcoming FOMC minutes for further direction, while persistent high yields and inflation risks continue to weigh on the metal's outlook.