Silver eased to about $62 in early Asian trade on Thursday, after touching a record high of $62.87 earlier in the day. The rally took a breather, but the bigger picture remains constructive. Experts who have tracked metals for years will tell you that they have seen similar patterns—big breakouts often take a moment to steady before the next surge.
Fed Signals Slow Path Ahead for Rate Cuts
The Federal Reserve trimmed interest rates by 25 bps to 3.50%–3.75%, but what caught traders’ eye was their cautious tone. The Fed didn’t commit to further cuts, saying the pace will depend on upcoming data. Many traders had expected a clearer signal that the cutting cycle was over, especially with inflation staying above the 2% target.
Jerome Powell reinforced this by noting that the threshold for more reductions remains “very high.” The Fed’s dot plot shows only one rate cut projected for 2026, which, interestingly, still supports demand for silver because lower rates tend to help non-yielding assets.
US Dollar Tries to Recover as Technicals Remain Supportive
The US Dollar Index attempted a mild rebound toward 98.70, after sinking to a seven-week low around 98.50. But even with this uptick, silver’s technical backdrop remains firm. Price remains well above its rapidly ascending 20-day EMA, which currently comes in near $56.24, indicating strong bullish momentum. At the same time, with RSI at 76.52, indicating overbought conditions, a brief pause might be in order. Nonetheless, should silver close above $62.87 daily, the door would swing wide open to $65.
