Silver Price Forecast: XAG/USD slumps to near $48.00 as traders lock in profits
Trending Articles- Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions think
- Trump says Venezuela's Maduro deposed, captured after US strikes
- Bitcoin Price Surges To $90,000. U.S. Arrests Venezuela's President, Triggers Bull Frenzy
- After Upheaval in the World’s Largest Oil Reserve Holder, Who Will Emerge as the Biggest Winner in Venezuela’s Oil Market?
- U.S. to freeze and take control of Venezuela's Bitcoin holdings after Maduro capture
- Ethereum Price Forecast: Accumulation addresses post record inflows in December despite high selling pressure
Silver price falls to near $48.10 in Wednesday’s early Asian session.
Silver faces some selling pressure, marking the biggest decline in more than a dozen years, as traders locked in profits.
The ongoing US government shutdown and Fed rate cut bets might cap the downside for XAG/USD.
Silver price ( XAG/USD) extends the decline to around $48.10 during the early Asian session on Wednesday. The white metal remains under pressure after facing its steepest sell-off in years in the previous session as traders locked in profits.
Silver tumbled more than 8% to mark its largest daily drop since 2021, amid concerns that the recent record high in the white metal left it overvalued. Additionally, easing trade tensions between the United States (US) and China lifts the US Dollar (USD) and undermines the USD-denominated commodity price.
US President Donald Trump last week threatened a new 100% tariff on China and suggested he would skip a meeting with Chinese President Xi Jinping to be held in South Korea later this month. Trump softened his stance over the weekend, saying that high tariffs on China are unsustainable, and expressed willingness for smoother relations with China. Trump late Wednesday noted that an upcoming meeting with his Chinese counterpart would yield a “good deal” on trade.
On the other hand, the ongoing US government shutdown, geopolitical risks and the expectation of the Federal Reserve (Fed) rate cuts could boost the safe-haven assets like Silver. The US federal government shutdown has entered its fourth week with no clear end in sight, marking the third-longest funding lapse in modern history. The GOP-backed bill failed to pass the Senate for the 11th time on Monday.
Traders are currently pricing in nearly a 99% possibility that the US central bank will cut interest rates again next week, followed by another reduction in December, according to the CME FedWatch tool. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding precious metal.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
