The silver price is stuck at $58... The key is the Fed's interest rate cut

FOMC Announcement Imminent, Market Taking a Breather - December Rate Cut with 89.4% Probability, Beneficial for Zero-Interest Assets like Silver - 7.2 Million Job Openings at a Crossroads… The Day These Numbers Are Released Will Be the Turning Point

The silver market is currently experiencing an intriguing wait-and-see phase. XAG/USD( ounce per dollar) continues to move within a narrow range around $58, as investors exercise cautious position adjustments ahead of next week’s Federal Reserve interest rate decision.

( Will the Fed’s ‘pivot’ signal favor silver?

The biggest variable influencing the current market is still the Fed. According to CME FedWatch data, there is an 89.4% chance that the Fed will cut the benchmark interest rate by 25 basis points at the December meeting, lowering it to the 3.50~3.75% range. This is nearly a certainty.

So why are silver investors paying attention? Since silver is a non-yielding asset, lower interest rates reduce holding costs. Ultimately, this increases the investment appeal of silver. In November, New York Fed President John Williams signaled that “the U.S. economy is slowing down, and demand for jobs is waning,” which fueled expectations of a rate cut.

) The variable is the employment indicator… 7.2 million job openings

But there’s one more important factor: the state of the labor market. The October JOLTS### Job Openings and Labor Turnover Survey### to be released this week will serve as the gauge. Market expectations are that U.S. companies will report around 7.2 million job openings.

If job openings are fewer than expected? Clear signs of weak labor demand will emerge, giving additional momentum to the Fed’s rate cuts. The dollar could weaken, and silver prices may rise.

Conversely, if job openings exceed expectations? The economy might be perceived as performing better than anticipated, and the Fed could show a willingness to tighten policy. In this case, silver’s upside potential could be limited.

( Conclusion: $58 Technical Support, Which Way Will It Break?

The silver market is currently precisely at the technical equilibrium point of $58. Ahead of the FOMC meeting results and the JOLTS employment data, investors are hesitant to commit to a direction. The upcoming statistics and the Fed’s decision are likely to determine silver’s next target price.