Silver trades lower as US Dollar strength, rate cut uncertainty limit gains

• Silver trades lower at around $50.80 on Thursday after a rejection below $52.00.
• The rebound in the US Dollar is limiting upside in precious metals as expectations for a December rate cut fade.
• Shutdown-related uncertainty and scarce economic data keep investors cautious ahead of NFP.

Silver (XAG/USD) trades around $50.80 on Thursday at the time of writing, down 0.70% on the day. The white metal is paring part of the earlier weekly advance, after prices briefly tested the $52.00 area before being rejected as the US Dollar (USD) regained strength.

The renewed firmness of the US Dollar is weighing across the commodities space, as investors reassess the likelihood of another Federal Reserve (Fed) rate cut in December. The Federal Open Market Committee (FOMC) Minutes released on Wednesday revealed significant resistance within the committee to further easing, reducing expectations for additional cuts and limiting the appeal of non-yielding precious metals.

Silver is also affected by the broad market pause ahead of the delayed Nonfarm Payrolls (NFP) report for September due later in the day. The Bureau of Labor Statistics (BLS) confirmed that the October report will be published together with November’s data due to the government shutdown, reducing short-term macro visibility. Markets will therefore focus on the available indicators, including jobless claims, hourly earnings and participation, which could help shape rate expectations ahead of the December Fed meeting.

Meanwhile, improved risk appetite following Nvidia’s strong earnings has triggered a modest rotation out of safe-haven assets, weighing on demand for Silver.

Silver Technical Analysis: XAG/USD compresses between falling resistance and rising support

Silver 4-hour chart. Source: FXStreet

In the 4-hour chart, XAG/USD trades at $50.80, down for the day by $0.47 from the opening price. The 100-period Simple Moving Average (SMA) rises to $49.85, and price remains above it, suggesting underlying support. The Relative Strength Index (RSI) stands at 47, neutral and pointing to fading momentum.

A descending trend line from $54.39 caps gains with resistance near $51.77, while a rising line from $45.56 underpins the price around $49.74. A topside break of the descending barrier could extend the recovery, whereas a close beneath the rising support would embolden sellers.

The broader setup remains capped by the descending trend line, while buyers defend the rising support. Beyond these lines, resistance aligns at $54.39, followed by $54.86, whereas support is seen at $45.56.

(The technical analysis of this story was written with the help of an AI tool)