Silver Price Prediction: XAG/USD Soars Past $47.50 as Sluggish US Dollar Drives Rally Towards $48.00 Peaks
Silver (XAG/USD) advanced sharply on Friday, moving higher past $47.50 from Thursday’s low of approximately $46.00, as a bearish US Dollar energized demand for precious metals. Investors brushed aside Federal Reserve hawkish comments, instead turning their attention to dismal U.S. jobs data and government shutdown threats that stoked hopes for rate cuts in the months ahead. With bulls setting sights on the pivotal resistance of $48.00, the metal is set to test multi-year highs, although overbought indicators caution against it. KEY LOOKOUTS • An important obstacle that has topped gains this week; a breakout may pave the way toward $48.65 and $49.15. • This area is a significant floor; a fall below may reveal $45.30 and $44.50. • Softening U.S. data and the threat of government shutdown enhance prospects for October and December rate cuts, enhancing silver’s bullish bias. • Even in bullishness, RSI indicators point to the rally being extended, with potential for corrective pullbacks. Silver prices continued their bullish trend on Friday, rising above $47.50 after rebounding from levels near $46.00, with broad weakness in the US Dollar helping to support the move. Traders turned their attention away from Fed hawkish commentary and instead priced in increased chances of future rate cuts, in response to soft labor market data and government shutdown worries. As precious metals are sought after, XAG/USD now targets the critical resistance at $48.00, a point that will decide whether the rally advances towards multi-year highs or experiences another corrective retreat. Silver (XAG/USD) jumped above $47.50 on Friday on the back of US Dollar weakness and increasing hopes for Fed rate reductions. The metal is now set to test the critical $48.00 resistance, with bulls targeting new multi-year highs. • Silver surged past $47.50, recovering from Thursday’s lows around $46.00. • Precious metals gained as the US Dollar dipped across the board. • Market sentiment improved on expectations of October and December Fed rate cuts. • Immediate resistance is at $48.00, with bigger targets at $48.65 and $49.15. • Support is between $46.15 and $45.95, with lower floors at $45.30 and $44.50. • Technical graphs indicate the rally is overextended but momentum is still on the upside. • Investors dismissed hawkish Fed comments and instead only looked at poor jobs data and US government shutdown threats. Silver prices rallied on Friday as a weakening US Dollar enhanced demand for precious metals, pushing XAG/USD above $47.50. The surge is indicative of new investor interest in safe-haven assets, with markets increasingly speculating about future Federal Reserve rate cuts. Weak U.S. employment figures and fears of a looming government shutdown have further weighed down the Dollar, making silver more competitive in the international market. XAG/USD Daily Chart Price SOURCE: TradingView The upbeat trend showcases silver’s increasing position as a safe haven against economic volatility and a value store during times of uncertainty. Investors seem convinced that monetary easing in the coming months will continue to boost precious metals, making silver a point of interest as it approaches multi-year highs. General market sentiment remains positive, as silver gains from the mix of weaker U.S. fundamentals and international demand for safe-haven assets. TECHNICAL ANALYSIS Silver (XAG/USD) is closing in on a key resistance level at about $48.00 following its advance above $47.50, with the bull channel indicating possible extensions at $48.65 and $49.15 if bulls maintain the momentum. The 4-hour RSI has backed off from overbought, implying there remains room for more room for additional upside, although the daily chart indicates the rally might be extended. On the downside, strong support lies between $46.15 and $45.95, protecting the broader bullish structure and acting as a cushion against corrective pullbacks. FORECAST If bullish momentum continues, Silver (XAG/USD) could extend its rally toward the key $48.00 resistance level, which has capped gains earlier in the week. A clear break above this level could unlock the way to $48.65, the top of the short-term bullish channel, and possibly $49.15, the 161.8% Fibonacci extension of the latest rally. Market sentiment toward likely Fed rate reductions and further weakening in the US Dollar will be strong stimuli for further gains. Conversely, a failure to overcome $48.00 may cause a corrective pullback, with early support at $46.15–$45.95. A breakdown below this region would expose more profound levels at $45.30 and $44.50, regions that earlier functioned as solid demand zones. Technical overbought indications further imply the possibility of short-term profit-taking, which will put pressures on silver prices before the larger bullish trend picks up once more.