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Silver
Source: Newsmaker.id
The price of silver (XAG/USD) hovered between US$53.4 and US$53.7 per troy ounce during the US session on Tuesday (October 27), following a drop to a year-to-date low of US$52.67. Market data indicates that silver remains under pressure after a sharp decline over the last few sessions. FXStreet
Silver’s recovery has found some support from easing pressure on oil prices and diplomatic efforts to de-escalate tensions in the Middle East. Nevertheless, oil prices remain high—with Brent trading around US$115 per barrel—meaning the risk of energy-driven inflation has not entirely dissipated. Investing.com Canada
Meanwhile, the DXY (US Dollar Index) is trading in the 102.21–102.23 range; the strengthening dollar acts as a primary headwind for silver. A stronger dollar makes dollar-denominated commodities relatively more expensive for holders of other currencies, which could limit the potential for an XAG/USD rebound. Investing.com Indonesia
The market’s primary focus is now on the Federal Reserve’s decision due Wednesday (October 28). Markets anticipate that interest rates will remain unchanged at 3.75%–4.00%, with an approximately 88.5% probability of the Fed holding rates steady. However, there remains a significant 71.5% chance of a rate hike in December, making the Fed’s policy statement and comments from Chair Kevin Warsh key points of interest. Investing.com
Consequently, the outlook for silver remains heavily dependent on the trajectory of the US dollar and interest rate expectations. A hawkish tone from the Fed could exert renewed pressure on XAG/USD by increasing the appeal of interest-bearing assets, whereas a more dovish signal could provide room for silver to extend its rebound from the US$52.67 level. For now, the US$53–US$54 range serves as a critical zone for determining whether the recovery can be sustained or if the metal will face renewed downward pressure.
Source: Newsmaker.id