Silver lurches higher as markets wrap up 2023, XAG/USD rebounds from $24.00

XAG/USD caught a bounce from $24.00 to retest $24.40.
Silver markets are churning as investors weigh Fed rate cut odds.
Despite the bullish lean, Silver remains capped below $24.60.

Joshua Gibson FXStreet

XAG/USD caught a broad-market risk appetite surge on Wednesday as investors continue to lean heavily into bets that the Federal Reserve (Fed) will start cutting interest rates in 2024, with some expecting the first cuts to begin as soon as March of next year.

Silver up on broad-market sentiment shift, but remains weighed down, gains limited

Spot Silver is leaning notably bullish as markets wrap up 2023 with a thin, shortened post-holiday trading week, keeping XAG/USD pinned into a familiar but rough near-term range, caught between $24.00 and $24.60.

US Treasury yields are easing back and the US Dollar is slumping further as investors pile into Fed rate cut bets, with the US 2-year Treasury yield slipping to 4.26% after starting Wednesday near 4.3%. As investors ramp up risk bids on rate cut expectations, the 2-year Treasury yield has fallen to its lowest level since May of this year, but Silver is seeing only limited knock-on bidding from broad-market risk flows.

XAG/USD Technical Outlook

Spot Silver caught a batch of bids back into the $24.40 region after seeing a sloppy bounce from the 200-hour Simple Moving Average (SMA) near $24.10, and XAG/USD is now caught into familiar congestion points that have plagued Spot Silver markets in the near-term.

XAG/USD has spent most of the year trapped in a rough cyclical pattern, circling the 200-day SMA near $23.50 as Silver struggles to capitalize meaningfully on broad-market Greenback bearishness.

The outlook heading into 2024 is leaning cautiously bullish as the 50-day SMA gears up for a bullish cross of the 200-day SMA, which could provide technical support for any pullbacks, but topside momentum remains limited and could pose a risk for any overextended long buildups.

XAG/USD Hourly Chart

XAG/USD Daily Chart

XAG/USD Technical Levels

XAG/USD

Overview
Today last price	24.36
Today Daily Change	0.10
Today Daily Change %	0.41
Today daily open	24.26

Trends
Daily SMA20	24.07
Daily SMA50	23.57
Daily SMA100	23.24
Daily SMA200	23.65

Levels
Previous Daily High	24.42
Previous Daily Low	24.06
Previous Weekly High	24.61
Previous Weekly Low	23.66
Previous Monthly High	25.27
Previous Monthly Low	21.88
Daily Fibonacci 38.2%	24.28
Daily Fibonacci 61.8%	24.2
Daily Pivot Point S1	24.08
Daily Pivot Point S2	23.89
Daily Pivot Point S3	23.73
Daily Pivot Point R1	24.43
Daily Pivot Point R2	24.6
Daily Pivot Point R3	24.79

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD turns south toward 0.6900 as USD firms up

AUD/USD sees fresh selling and drops toward 0.6900 in late Asian trading on Monday, as renewed US Dollar strength weighs on the pair amid lingering Middle East and Russia-Ukraine geopolitical tensions. Focus remains on Oil prices, Treasury bond yields, and RBA expectations for fresh trading impetus in the major.

USD/JPY retakes 158.00 amid hawkish BoJ bets, firmer USD

USD/JPY erases losses and retakes 158.00 in the Asian session on Monday, trading within a one-week-old range. Geopolitical uncertainty continues to underpin the US Dollar, despite fading Fed rate hike hopes, supporting the pair's rebound. However, further upside could be capped by hawkish BoJ expectations and looming intervention risks that could support the Japanese Yen.

Gold flat lines below $4,150 as rallying USD offsets receding Fed hike bets

Gold extends its consolidative price move, trading below $4,150 heading into the European session, and moves within a range held over the past week or so. As investors look past Friday's disappointing US jobs data, the US Dollar regains strong positive traction and rallies to a fresh high since April 2025. This is seen as a key factor capping the commodity, though receding bets for an October rate hike by the Federal Reserve help limit the downside.

BNB: Derivatives back bullish upside continuation

BNB, formerly known as Binance Coin, edges lower trading around $790 on Monday after posting three consecutive weekly gains. Rising Open Interest and positive funding rates suggest that bullish positioning is strengthening in the derivatives market.

Economics week ahead

In the U.S., the September ISM Services index is expected to ease modestly while continuing to signal expansion, with particular attention on whether price pressures remain elevated. In Canada, the labor market likely rebounded in September, although broader trends still point to a cooling pace of employment growth.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.