Silver( maintains a steady upward trend after hitting an all-time high... trading around the $62 level

2025-12-24 22:13:14

Abstract generation in progress

XAG/USD hits 62.87 dollars intraday, after reaching a historic high, enters correction phase - US Federal Reserve cuts benchmark interest rate by 25bp, but signals only one additional cut in 2026, suppressing market expectations - Technical bullishness remains valid… 20-day EMA at 56.24 dollars acts as strong support, correction interpreted as a buy signal

The international silver market has surpassed a historic milestone. On Thursday during Asian hours, spot silver prices rose to $62.87 per ounce, hitting an all-time high. However, following this sharp increase, the market is facing short-term overbought corrections and profit-taking, currently fluctuating around $62.00.

Market focus is on the Fed’s monetary policy stance. The US Federal Reserve lowered the benchmark interest rate by 25 basis points at the December meeting to a range of 3.50–3.75%, but indicated that the pace of future rate cuts will slow significantly. The dot plot projecting the 2026 year-end rate at 3.4% suggests that only one additional rate cut may occur next year. As Chair Jerome Powell stated, “The door for further cuts is quite high,” which provides limited positive signals for silver, an interest-free asset.

The movement of the dollar also influences the market. The US Dollar Index(DXY) fell to 98.50 immediately after the rate decision, marking a 7-week low, but has since rebounded to around 98.70. If further dollar weakness is limited, the upward momentum of silver prices could face temporary constraints.

Technical outlook remains bullish

The technical trend of silver prices currently maintains a solid upward structure. The key short-term indicator, the 20-day Exponential Moving Average(EMA), stands at $56.24, while silver is trading well above this level. The steep upward slope of this line indicates that buying pressure is leading the market.

The Relative Strength Index(RSI) is at 76.52, entering overbought territory. This suggests the possibility of short-term sideways movement or a price correction. However, expert analysis remains optimistic. “As long as the 20-day EMA maintains its upward trend, corrections should be viewed as buying opportunities,” is the consensus. If support is maintained at the 20-day EMA during the correction, the upward trend remains intact.

Looking ahead, if the market can close above $63.00, it is expected to enter a new high exploration phase. In this scenario, the potential for further rallies is high.

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