Forex News
- USD/CHF corrects lower from four-week highs at 0,8337 to test support in the 0.8310-0.8315 area.
- Market expectations of a Fed rate hike in December are likely to limit US Dollar dips.
- The technical picture shows a mild correction from overbought levels.
The US Dollar (USD) posts moderate losses against the Swiss Franc (CHF) on Thursday, trimming gains after a 1.7% rally over the previous two days pushed momentum indicators into overbought levels on intraday charts. The USD/CHF pair trades at 0.8320 after pulling back from one-month highs near 0.8340, testing support at previous highs between 0.8310 and 0.8315.
Dollar dips, however, are expected to remain shallow, as recent US data, namely the hot consumer inflation figures seen on Tuesday and the strong employment report released last week, have paved the way for the Federal Reserve (Fed) to hike interest rates again in December.
Fed officials have endorsed that view, and some of them might reiterate their stance later on Thursday. Chicago Fed President Austan Goolsbee and San Francisco Fed President Mary Daly have already expressed their concern about the high inflation pressures earlier this week. New York Fed President John Williams, who is also expected to speak later in the day, has already hinted at a further rate hike before year-end. Bearing this in mind, it is difficult to foresee any significant US Dollar reversal.
Technical Analysis: Pulling back from overbought levels
Bulls found resistance at the 78.6% Fibonacci retracement of the October-November rally, and the pair is now correcting lower from oversold levels, with dips likely to find buyers. The USD/CHF is now trading at 0.8322, with the 4-hour Relative Strength Index (14) hovering near 67, still close to overbought territory, and the Moving Average Convergence Divergence (MACD) in positive territory, which suggests that buying pressure is still present even as upside appears to be slowing.
Bears are struggling to push prices below the mentioned support area above 0.8310. Below here, the next relevant target is at the November 10 high, near 0.8270, although it seems a far-away level for today. On the topside, a confirmation above the mentioned Fibonacci retracement of 0.8337 would expose a key resistance at the October 14 high at 0.8395,
(The technical analysis of this story was written with the help of an AI tool. Know more.)
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | 0.00% | -0.11% | 0.02% | 0.34% | 0.09% | -0.11% | |
| EUR | 0.03% | 0.04% | -0.07% | 0.04% | 0.38% | 0.10% | -0.09% | |
| GBP | -0.01% | -0.04% | -0.11% | 0.04% | 0.34% | 0.05% | -0.13% | |
| JPY | 0.11% | 0.07% | 0.11% | 0.12% | 0.45% | 0.18% | -0.00% | |
| CAD | -0.02% | -0.04% | -0.04% | -0.12% | 0.33% | 0.06% | -0.13% | |
| AUD | -0.34% | -0.38% | -0.34% | -0.45% | -0.33% | -0.25% | -0.45% | |
| NZD | -0.09% | -0.10% | -0.05% | -0.18% | -0.06% | 0.25% | -0.17% | |
| CHF | 0.11% | 0.09% | 0.13% | 0.00% | 0.13% | 0.45% | 0.17% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
- WTI struggles to capitalize on an intraday bounce and remains below the overnight swing high.
- Traders opt to wait for further geopolitical developments before placing fresh directional bets.
- The bearish technical setup suggests that the path of least resistance remains to the downside.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some dip-buyers on Thursday, climbing back above the $86.00 mark during the first half of the European session. The commodity, however, lacks follow-through and remains below the previous day's swing high as traders await further developments surrounding the Middle East crisis.
US forces reportedly carried out a series of strikes on Iran's Qeshm Island, while Tehran attacked ship navigation systems on the Omani island of Didamar, located at the entrance of the Persian Gulf. Moreover, Iranian Armed Forces Deputy Chief of Staff Brigadier General Kioumars Heidari said that Tehran has closed the strategic Strait of Hormuz and will not open it except by the order of the leader of the revolution. This keeps the geopolitical risk premium in play and offers some support to crude oil prices.
Investors, however, remain hopeful over a potential diplomatic breakthrough to end the US-Iran conflict and the Russia-Ukraine war. Moreover, rising US crude inventories have fueled concerns about a potential supply glut, which holds back bulls from placing aggressive bets on the black liquid. In fact, US production for the week ending October 30 reached a new record; the American Petroleum Institute (API) estimated that US commercial crude inventories rose about 9 million barrels in the week ending November 6.
From a technical perspective, crude oil prices maintain a bearish near-term tone beneath the 100-day Simple Moving Average (SMA) at $86.81. Adding to this, momentum indicators reinforce the soft bias, with the Relative Strength Index (14) hovering near the low-30s and the Moving Average Convergence Divergence (MACD) line holding below zero with a negative histogram, hinting at persistent downside pressure. That said, the 50.0% Fibonacci retracement at $85.61 offers immediate structural support.
A convincing break below would expose deeper Fibonacci floors at $81.26 (61.8%) and $75.06 (78.6%), while a more distant structural base emerges near $67.17. On the topside, immediate resistance is seen at the 100-day SMA at $86.81, followed by the 38.2% retracement at $89.96. A sustained break above these would be needed to ease the current bearish bias and open the way toward the 23.6% retracement at $95.34, with the cycle high region near $104.04 remaining a remote barrier for now.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
WTI daily chart
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
ING strategists led by Francesco Pesole note the Dollar’s rally is driven by hawkish Federal Reserve rhetoric and stronger US inflation, pushing DXY back to April 2025 levels. They stress this is a rates-driven move, with real front-end differentials supporting Dollar momentum. The team continues to see upside risks in coming days, with PPI flagged as a potential catalyst for another USD leg higher.
Rates-driven move underpins Dollar strength
"The combination of hawkish Fedspeak and a US CPI beat earlier this week continues to pay dividends for the dollar. DXY is now back at Liberation Day (April 2025) levels, with real front-end rate differentials continuing to fuel strong dollar momentum. Importantly, this remains a rates-driven move, with contained excessive USD strength relative to short-term fair value currently built in."
"We continue to see upside risks for the dollar in the coming days. The Fed's Chris Waller has put a 50bp December move on the radar, and that should keep markets biased towards hawkish interpretations of incoming data. December pricing remains at 28bp, leaving scope for further adjustment."
"Today’s home sales data are unlikely to matter, but tomorrow’s PPI will. That may be the catalyst for another USD leg higher."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Lee Hardman at MUFG notes that USD/JPY has rebounded toward 160.00 as the stronger US Dollar and hawkish Fed repricing unwind September’s BoJ-driven correction. Japanese officials have stepped up verbal intervention, signalling readiness to act again, while MUFG still expects the BoJ to maintain a faster quarterly pace of hikes in December despite dovish comments from board member Asada.
Japan signals readiness to act again
"The hawkish repricing of Fed rate hike expectations and stronger US dollar have resulted in USD/JPY rising back to within touching distance of the 160.00-level for the first time since the start of September."
"With USD/JPY moving back towards pre-joint intervention levels from late July/early August, it has prompted Japanese officials to step up verbal intervention overnight to support the yen. Japan’s top currency official Atsushi Mimura stated overnight that “I have a strong impression that the currency moves over the past few days have been too fast”. He added that “it’s too early to forget what happened this summer”."
"It sends a strong signal that Japan is prepared to intervene again to support the yen which should help to limit further upside for USD/JPY beyond 160.00."
"However, it will be even more difficult to reverse the upward trend for USD/JPY right now with the USD strengthening broadly on the back of expectations for faster Fed rate hikes. If the rising risk of further intervention helps to stabilize USD/JPY while the US dollar continues to strengthen more broadly it could see non-USD yen crosses moving lower."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- US index futures struggle as hot US CPI data pushed market odds for a December Fed hike to nearly 91%.
- Nvidia shares tumbled over 8.5% after-hours amid reports of leadership turmoil and potential removal of CEO Jensen Huang.
- Regular Wednesday trading closed higher, led by a 25% CoreWeave surge that boosted the Nasdaq and S&P 500.
Dow Jones futures remain steady around 52,580 during the European hours on Thursday. Meanwhile, S&P 500 futures decline 0.43% to trade around 7,610, and Nasdaq 100 futures fall 0.92% to trade around 28,210.
US equity futures face challenges amid growing hawkish sentiment surrounding the Federal Reserve's (Fed) policy outlook, fueled by hotter-than-expected US Consumer Price Index (CPI) inflation data.
Traders have ramped up bets on a December rate hike after Fed Governor Christopher Waller indicated earlier this week that he would support a quarter-point increase, or even a half-point move if inflation worsens. According to the CME FedWatch Tool, markets are now pricing in a nearly 91% probability of a December rate hike.
Market sentiment turned cautious as Nvidia shares came under renewed selling pressure following reports of potential leadership turmoil at the chipmaker. During after-hours trading, the stock tumbled more than 8.5% after The New York Times reported allegations of a relationship between CEO Jensen Huang and a company executive, while The Wall Street Journal reported that the board was preparing to remove him from his position. Given Nvidia’s central role in the AI boom, instability at the company risks triggering broader repercussions across global markets.
Earlier in the day, US equities closed Wednesday’s regular session higher, with the Nasdaq Composite and S&P 500 gaining 1.6% and 1.31%, respectively, while the Dow Jones Industrial Average advanced 0.49%. That rally was bolstered by a 25% surge in AI computing firm CoreWeave on the back of an optimistic business outlook, which helped reinforce investor confidence in the wider AI sector.
US bond trading pauses as Veterans Day shuts Treasury market
According to HSBC, activity in the US rates complex was muted midweek as “the US Treasury market was closed in observance of Veterans Day,” temporarily removing a key reference point for bond pricing and cross-asset flows.
AI stocks FAQs
First and foremost, artificial intelligence is an academic discipline that seeks to recreate the cognitive functions, logical understanding, perceptions and pattern recognition of humans in machines. Often abbreviated as AI, artificial intelligence has a number of sub-fields including artificial neural networks, machine learning or predictive analytics, symbolic reasoning, deep learning, natural language processing, speech recognition, image recognition and expert systems. The end goal of the entire field is the creation of artificial general intelligence or AGI. This means producing a machine that can solve arbitrary problems that it has not been trained to solve.
There are a number of different use cases for artificial intelligence. The most well-known of them are generative AI platforms that use training on large language models (LLMs) to answer text-based queries. These include ChatGPT and Google’s Bard platform. Midjourney is a program that generates original images based on user-created text. Other forms of AI utilize probabilistic techniques to determine a quality or perception of an entity, like Upstart’s lending platform, which uses an AI-enhanced credit rating system to determine credit worthiness of applicants by scouring the internet for data related to their career, wealth profile and relationships. Other types of AI use large databases from scientific studies to generate new ideas for possible pharmaceuticals to be tested in laboratories. YouTube, Spotify, Facebook and other content aggregators use AI applications to suggest personalized content to users by collecting and organizing data on their viewing habits.
Nvidia (NVDA) is a semiconductor company that builds both the AI-focused computer chips and some of the platforms that AI engineers use to build their applications. Many proponents view Nvidia as the pick-and-shovel play for the AI revolution since it builds the tools needed to carry out further applications of artificial intelligence. Palantir Technologies (PLTR) is a “big data” analytics company. It has large contracts with the US intelligence community, which uses its Gotham platform to sift through data and determine intelligence leads and inform on pattern recognition. Its Foundry product is used by major corporations to track employee and customer data for use in predictive analytics and discovering anomalies. Microsoft (MSFT) has a large stake in ChatGPT creator OpenAI, the latter of which has not gone public. Microsoft has integrated OpenAI’s technology with its Bing search engine.
Following the introduction of ChatGPT to the general public in late 2022, many stocks associated with AI began to rally. Nvidia for instance advanced well over 200% in the six months following the release. Immediately, pundits on Wall Street began to wonder whether the market was being consumed by another tech bubble. Famous investor Stanley Druckenmiller, who has held major investments in both Palantir and Nvidia, said that bubbles never last just six months. He said that if the excitement over AI did become a bubble, then the extreme valuations would last at least two and a half years or long like the DotCom bubble in the late 1990s. At the midpoint of 2023, the best guess is that the market is not in a bubble, at least for now. Yes, Nvidia traded at 27 times forward sales at that time, but analysts were predicting extremely high revenue growth for years to come. At the height of the DotCom bubble, the NASDAQ 100 traded for 60 times earnings, but in mid-2023 the index traded at 25 times earnings.
Rabobank’s Global Daily notes that Nvidia’s board is reportedly discussing removing Jensen Huang as CEO after personal and export-control related allegations, creating turbulence for global equities given heavy US and AI concentration. The report highlights potential chaos in the global chip trade, questions around US export-control enforcement, and broader geoeconomic ramifications involving China, rare earths and regional security dynamics.
Nvidia leadership shock and chip risks
"The Nvidia board is meeting to discuss removing Jensen Huang as CEO after revelations of an affair with a woman alleged to be a Chinese spy, another with a co-worker, and allegations the firm lobbied for and engaged in supplying China with chips despite export controls."
"It’s not just about his leadership. As the Australian Financial Review summarises, “Huang’s love life could throw the global chip trade into chaos.” This affair is seen as a “counterintelligence nightmare” given his close links to Trump, e.g., riding to Beijing on Air Force One."
"Even worse, if the US decision to look the other way on chip sales was a geoeconomic bribe to ensure Chinese rare earths and help in geopolitics, then things could get far more turbulent."
"In short, do we get escalation or de-escalation? Our base case remains the former, and we do not yet see a sustainable path to the latter."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Jim Reid’s team at Deutsche Bank reports that Brent Oil prices rebounded by 1.2% after two days of declines, even without a clear headline driver. This move fed into higher inflation expectations, with 1‑year Euro inflation swaps rising to 3.02%. The bank also notes that Brent later fell back about a percent overnight, leaving prices roughly unchanged versus the prior morning.
Oil rebound lifts Euro inflation expectations
"Turning to the Middle East, oil prices were back up again yesterday, albeit with no obvious headline driving the moves. So after two days of consecutive declines, Brent crude rose +1.2% after being higher earlier in the session. And in turn, we saw the impact on inflation pricing, with 1yr Euro inflation swaps (+9.3bps) rising to +3.02%."
"However, overnight Brent has fallen around a percent taking it back to roughly where it was this time yesterday. So a big round trip. That’s helped 10yr US yields reopen half a basis point lower this morning after the holiday."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
ING’s Francesco Pesole highlights that divergent central bank rhetoric between the Federal Reserve and European Central Bank is weighing on the Euro against the Dollar. Wider two-year swap differentials favour USD, leaving EUR/USD at risk of testing 1.100 in coming days. ING expects that level to offer solid support, arguing a decisive break below 1.100 would likely require markets to price a 50bp Fed hike in December.
Rate differentials pressure the Euro
"That contrast neatly captures the current EUR/USD story. The pair's two-year swap rate differential has widened by around 15bp over the past five sessions, and we think the scope for further repricing is greater in front-end USD rates than EUR rates in the near term."
"That leaves EUR/USD at material risk of testing 1.100 in the coming days. We expect that level to offer relatively solid support, not least because the pair is already trading at a nearly 2% discount to our short-term fair value."
"A decisive move below 1.100 would probably require markets to seriously entertain a 50bp December hike. That looks like a stretch for now."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- Gold drifts lower for the third straight day as the post-US CPI USD buying remains unabated.
- Firming Fed rate hike bets and Middle East risks lift the safe-haven USD to April 2025 highs.
- The setup suggests that the path of least resistance for XAU/USD remains to the downside.
Gold (XAU/USD) attracts heavy follow-through selling for the third straight day on Thursday, sliding further below $3,950 during the first half of the European session. The US Dollar (USD) buying remains unabated amid firming Federal Reserve (Fed) rate-hike expectations, bolstered by hot US consumer inflation figures. Adding to this, Middle East uncertainties further underpin the safe-haven buck, which, in turn, is seen as a key factor exerting downward pressure on the commodity.
The October US Consumer Price Index (CPI) report, released earlier this week, underpinned prospects for further policy tightening by the Fed. Moreover, hawkish comments from several influential FOMC members reaffirmed market bets that the US central bank will raise borrowing costs again in December. Adding to this, traders have also started pricing in the possibility of a jumbo 50-basis-point (bps) rate hike next month. The outlook pushed the yield on the benchmark 10-year US government bond back above the 5% threshold on Wednesday and continues to act as a tailwind for the Greenback.
Fed hawks firm up December hike expectations as political-pressure fears fade
Analysts at Rabobank highlight that the market’s response to the latest hawkish signals from Fed officials, “including those from Waller that put the risk of a 50-bps rate hike on the table,” goes beyond the immediate repricing of the policy path. They note that the market is now “fully priced for a December rate hike,” and, crucially, that these comments were “met with no real speculation that the Fed would be pressured by political forces not to raise rates.”
Rabobank adds that “since Fed Chair Warsh surprised the market with a hawkish position at Jackson Hole in August, fears about diminished Fed credibility have dissipated.” In their view, “the results of last week’s midterm elections suggest less reason to expect pressure from the White House,” reinforcing the perception that the Fed can proceed with its tightening plans without significant political interference.
Meanwhile, the geopolitical risk premium remains in play amid the US-Iran standoff over the Strait of Hormuz, with both sides striking islands in the waterway in recent days. In fact, US forces reportedly carried out a series of strikes on Iran's Qeshm Island, while Tehran attacked ship navigation systems on the Omani island of Didamar, located at the entrance of the Persian Gulf. Moreover, Iranian Armed Forces Deputy Chief of Staff Brigadier General Kioumars Heidari said that Tehran has closed the strategic waterway and will not open it except by the order of the leader of the revolution.
The aforementioned factors lift the USD Index (DXY), which tracks the Greenback against a basket of currencies, to its highest level since April 2025 and back the case for additional gains. This, in turn, suggests that the path of least resistance for the Gold price remains to the downside and any attempted recovery is more likely to be sold into. Traders now look to the release of the usual Weekly Initial Jobless Claims data from the US and speeches from Fed officials. Apart from this, incoming geopolitical headlines might infuse volatility, providing some impetus to the buck and the XAU/USD pair.
XAU/USD 1-hour chart
Technical Analysis
The precious metal maintains a bearish near-term tone following the previous day's rejection near the 100-hour Exponential Moving Average (EMA) at $4,044. A subsequent fall below the 50.0% retracement and acceptance below the $4,000 psychological mark validate the negative bias. That said, the Moving Average Convergence Divergence (MACD) indicator has just turned marginally positive. Meanwhile, the Relative Strength Index (RSI) is hovering near 31 and only recovering slightly from the oversold territory. Momentum indicators merely hint at stabilization rather than a decisive upside reversal, while gold remains capped by clustered resistance overhead.
In the meantime, immediate support is seen at the 61.8% retracement at $3,976, ahead of deeper Fibonacci floors at $3,930 (78.6%) and $3,870 (100%), where buyers could attempt to defend the broader uptrend if the current pullback extends. On the topside, initial resistance emerges at the 50.0% retracement at $4,009, followed by a dense barrier around the 38.2% retracement at $4,041 aligned with the 100-period EMA at $4,044. A sustained strength above the latter would open the way toward the 23.6% retracement at $4,082 and the cycle high anchor near $4,147.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
- Silver prices remain sensitive to shifting rate expectations and broader US Dollar momentum ahead of the data.
- Traders turn their focus to upcoming US weekly Jobless Claims, existing home sales, and producer inflation figures.
- Fresh economic releases are expected to provide critical direction on the Federal Reserve’s monetary policy trajectory.
Silver price (XAG/USD) depreciates after posting modest gains in the previous day, trading around $51.40 per troy ounce during the European hours on Thursday. Dollar-denominated Silver falls as a stronger US Dollar (USD) weighs on the precious metal.
The Greenback remains stronger amid growing hawkish sentiment surrounding the Federal Reserve's (Fed) policy outlook, fueled by hotter-than-expected US Consumer Price Index (CPI) inflation data.
Traders have ramped up bets on a December rate hike after Fed Governor Christopher Waller indicated earlier this week that he would support a quarter-point increase, or even a half-point move if inflation worsens. According to the CME FedWatch Tool, markets are now pricing in a nearly 91% probability of a December rate hike.
Market participants are now shifting their focus to key upcoming US economic data, including weekly Jobless Claims, existing home sales, and producer inflation figures, for fresh clues on the Federal Reserve’s monetary policy trajectory.
Technical Analysis:
In the daily chart, XAG/USD trades at $51.40, keeping a bearish near-term bias as price remains below both the nine-period and 50-period Exponential Moving Averages (EMAs). This positioning suggests that rallies are being capped by short- and medium-term trend resistance. The 14-day Relative Strength Index (RSI) at 38.21 sits below the 50 line, hinting at persistent downside pressure rather than oversold exhaustion, while the elevated FXS Fed Sentiment Index at 145.61 reinforces a backdrop of tightening policy expectations that continues to weigh on silver prices.
On the topside, immediate resistance emerges at the nine-period EMA at $51.99, with a more substantial barrier at the 50-period EMA near $57.29, where any recovery would likely struggle unless momentum improves. Beyond these technical caps, the FXS Fed Sentiment Index level at 145.61 underscores the macro headwind environment for XAG/USD. On the downside, momentum support is implied by the RSI region around 38.21, where previous dips have slowed, though a clear structural price floor is not visible in the current dataset, leaving the metal vulnerable to further declines if $51.35 gives way.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
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