White Metal Climbs to $72.70 as Rate-Cut Bets Fuel Fresh Gains in XAG/USD

Silver momentum builds on the back of persistent expectations for significant Fed easing in 2026, pushing XAG/USD toward $72.70 during early European hours today. Market participants are pricing in a 70.6% probability of at least 50 basis points in cuts next year, a notably more aggressive scenario than the central bank’s own December projections suggested.

Technical Backdrop Remains Constructive

On the daily timeframe, XAG/USD is trading around $72.19 with the 20-day exponential moving average providing clear support below current levels. The ascending slope of this key indicator reinforces the prevailing uptrend, though the RSI reading of 80.95 hints at stretched conditions. Consolidation phases could emerge if momentum softens, with initial support appearing near the $63.07 zone marked by the 20-day EMA itself. As long as price remains above this dynamic floor, the broader uptrend retains validity.

Economic Data Weighs In, But Doves Take the Spotlight

The latest US economic snapshot delivered a surprise: Q3 GDP accelerated to 4.3% annualized growth, outpacing the prior quarter’s 3.8% pace. This would normally dampen rate-cut enthusiasm, yet market focus remains glued to the Fed’s forward guidance, which indicated just one additional reduction through 2026—a far cry from what futures markets are currently discounting.

Non-yielding assets like Silver benefit structurally when real interest rates compress. The divergence between market expectations (50+ bps of cuts) and the Fed’s December dot plot (just ~100 bps total through end-2026) keeps the bullish narrative intact for precious metals.

What’s Next

Investors will eye Initial Jobless Claims data due at 13:30 GMT, with consensus calling for a flat 223K reading. A softer labor market would reinforce dovish bets and potentially extend Silver’s winning streak further.