Silver (XAG/USD) traded 0.5% higher on Friday, advancing toward the $57.50 mark during the Asian session. The white metal is rebounding after a pullback to the $56.50 region from its all-time high of $58.90, with sentiment supported by growing confidence that the Federal Reserve (Fed) will cut interest rates at next week’s policy meeting. Lower borrowing costs generally benefit non-yielding assets such as silver.
According to the CME FedWatch Tool, markets are pricing an 87% probability of a 25 bps rate cut that would bring the Fed funds target range down to 3.50%–3.75% in December. This stands in contrast to Chair Jerome Powell’s remarks in October, when he emphasized that a December rate cut was “far from a foregone conclusion.”
Soft US labor market data has strengthened dovish expectations. ADP figures released Wednesday showed the private sector shed 32K jobs in November, compared with expectations for a 5K increase. Meanwhile, several Federal Open Market Committee (FOMC) officials have voiced support for additional policy easing in light of emerging labor-market risks.
Silver technical analysis
XAG/USD traded at $57.51 in early Friday trading, supported by a firmly rising 20-day Exponential Moving Average (EMA), now at $53.91. The steepening EMA highlights strong underlying bullish momentum, with price holding comfortably above trend support.
The 14-day Relative Strength Index (RSI) sits at 68.48, reflecting strong momentum near overbought territory. While the setup remains constructive, the elevated RSI suggests the potential for a brief consolidation before the next upside extension.
A sustained close above $57.51 would maintain topside pressure, keeping the focus on further gains. Pullbacks that remain above the 20-day EMA would preserve the broader bullish structure.
