Silver (XAG/USD) prices recovered to near $49.00 during late Asian trading hours on Wednesday, rebounding from an earlier two-week low of $47.53. The precious metal had fallen nearly 12% since Friday, when optimism surrounding a potential trade agreement between the United States and China had weighed on demand for safe-haven assets.
Investor sentiment shifted after US President Donald Trump expressed uncertainty over a planned meeting with Chinese President Xi Jinping later this month in South Korea. While Trump initially sounded optimistic about achieving a “fair deal,” he later cautioned that the meeting “might not take place,” according to a report from Yahoo News. The renewed ambiguity has boosted demand for traditional safe-haven assets such as silver.
Meanwhile, the broader outlook for silver remains constructive, as the Federal Reserve (Fed) is widely expected to cut interest rates in its upcoming policy meeting next week. Lower rates typically enhance the appeal of non-yielding assets like silver. Market participants will also be closely watching the release of US Consumer Price Index (CPI) data for September, now scheduled for Friday, which could influence the Fed’s policy stance.
Silver technical analysis
Silver has staged a moderate recovery after a sharp correction from its all-time high of $54.50 recorded last Friday. The short-term trend remains uncertain, as the price struggles to hold above the 20-day Exponential Moving Average (EMA), currently hovering around $49.04.
The 14-day Relative Strength Index (RSI) has slipped below 60.00, signaling that recent bullish momentum has faded.
On the downside, a break below the intraday low of $47.53 could expose the next support levels at the October 2 low of $45.90 and the September 25 low of $43.78.
Conversely, a decisive move above the October 21 high of $52.71 could open the door for a retest of the record high at $54.50.
