Silver Finds Its Footing as Markets Await Fed Minutes

Traders' Opinions

Summary:

Silver rebounds toward $63.45 after dipping to $62.19, with fading Fed hike expectations helping stabilize the metal. Attention now turns to the FOMC Minutes for the next directional catalyst.

BUY XAGUSD

EXP

PENDING

63.500

Entry Price

72.000

60.000

65.892 +2.573 +4.06%

Pips

PENDING

60.000

Exit Price

63.500

Entry Price

72.000

Silver is attempting to regain some momentum on Wednesday, with XAG/USD trading around $63.45 after recovering from an intraday low of $62.19. The rebound follows Tuesday’s rejection from the $66.50 area, which triggered a round of profit-taking and temporarily interrupted the metal’s recent advance.

The broader environment remains mixed. Escalating tensions between the US and Iran continue to inject uncertainty into markets, particularly after the previous agreement between the two sides expired without fresh negotiations. Continued disruption around the Strait of Hormuz is also keeping energy prices elevated, raising concerns that another inflationary impulse could complicate the Federal Reserve’s policy outlook.

For Silver, however, weaker US economic data are providing some support. Recent labour-market and inflation figures have significantly reduced expectations for an immediate Fed rate hike, with markets now assigning only around a 32% probability of an increase in September. Lower expectations for additional tightening generally favour precious metals by reducing pressure from yields and the US Dollar.

The focus now shifts to the July FOMC Minutes at 18:00 GMT. Investors will be looking for clues on how policymakers view the balance between a cooling US economy and renewed inflation risks from higher energy prices.

Silver’s latest decline looks more like a corrective phase following the rejection from $66.50 than a decisive shift in the broader outlook. As long as Fed tightening expectations remain subdued, dips could continue to attract buyers. However, elevated Treasury yields and geopolitical-driven inflation concerns could keep price action volatile in the near term.

Technical Analysis

Silver’s latest pullback has brought price into an area that could prove important for the next leg of the move. On the 4-hour chart, XAG/USD has retreated from the $66.50–$66.70 region but continues to respect the broader recovery structure that has been developing since the July lows.

What catches my attention here is the cluster of technical support around $62.20–$62.50. The area coincides with the 38.2% Fibonacci retracement, previous horizontal resistance and the rising trendline supporting the advance from the early-August lows. Price briefly slipped into this region before recovering toward $63.50, showing that buyers are beginning to respond.

For me, this keeps the recent weakness firmly in the category of a correction rather than a confirmed bearish reversal. Silver had advanced sharply into $66.50, so some consolidation was always likely. As long as the market continues to defend the $62.00 area, the underlying setup still favours another attempt higher.

The first hurdle sits around $64.50, followed by the more important $66.50–$66.70 ceiling. A convincing break above the recent highs would signal that the correction has run its course and could release another wave of buying toward the $71.50–$72.30 region.

Beyond that, $72.00 is the level I would watch closely. A sustained breakout there would represent a significant change in the broader structure and could eventually put $78.00–$79.00 within reach.

There is still room for a deeper retracement without completely destroying the bullish picture. If $62.20 gives way, the 50% Fibonacci level around $61.20 becomes the next area to watch, followed by the 61.8% retracement near $60.00. A sustained break beneath $60.00 would force me to reassess the bullish setup.

For now, I see Silver as correcting into support rather than reversing trend. The reaction from the 38.2% Fibonacci level, rising trendline and former resistance zone provides enough confluence to favour another push toward $66.50, with $72.00 becoming the larger objective if buyers regain momentum.

TRADE RECOMMENDATION

BUY SILVER

ENTRY PRICE: 63.50

STOP LOSS: 60.00

TAKE PROFIT: 72.00

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Silver Finds Its Footing as Markets Await Fed Minutes

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