Silver is facing resistance at $31.29, with the 50-day moving average at $31.77 serving as the key level. A break above this threshold could pave the way for a test of $32.28-$32.89. However, the broader downtrend suggests that sellers are likely to return at higher levels.
Support is firm at $30.61, while a more important bottom is at $29.68. A break below this point could lead to a deeper decline, possibly targeting the 200-day moving average at $28.84. Traders are watching these levels closely as silver consolidates within a narrow range.
Macro factors and Fed signals
The Federal Reserve’s next move remains a crucial factor for silver. Markets currently see a 58.9% chance of a 25 basis point rate cut in December, although recent economic data and commentary suggest rates could remain higher for longer. Rising Treasury yields, coupled with investor expectations of prolonged monetary tightening, further reduce the appeal of non-yielding assets like silver.
ANZ analysts highlighted that while a Fed pause may add pressure in the short term, geopolitical risks, robust physical demand and accommodative monetary conditions are likely to maintain a favorable long-term outlook for silver.