Silver price (XAG/USD) revisits the weekly low around $49. 50 during the European trading session on Friday. The white metal faces selling pressure as traders remain confident that the Federal Reserve (Fed) will not cut interest rates in the December policy meeting. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 basis points (bps) to 3. 50%-3. 75% in the December meeting is 35. 5%. The scenario in which the Fed holds interest rates steady bodes poorly for non-yielding assets, such as Silver. Fed dovish expectations stay lower as officials remain concerned over rising inflation risks to the upside. On Thursday, Cleveland Fed Bank President Beth Hammack stated that high is the “real issue” of the economy, adding that “inflation is still too high and trending in wrong direction”, which calls for the need to keep the monetary policy “somewhat restrictive”. Meanwhile, the rising United States (US) jobless rate has also failed to intensify Fed dovish expectations meaningfully. The US Nonfarm Payrolls (NFP) data for September showed on Thursday that the Unemployment Rate rose to 4. 4%. In Friday’s session, investors will focus on the flash US S&P Global Purchasing Managers’ Index (PMI) data for November, which will be published at 14: 45 GMT. Silver technical analysis Silver price struggles to hold the 20-day Exponential Moving Average (EMA), which trades around $49. 50. The 14-day Relative Strength Index (RSI) returns inside the 40. 00-60. 00 range, suggesting indecisiveness among investors about the near-term outlook. Looking down, the September 23 high of $44. 47 would remain a key support. On the upside, the all-time high of $54. 50 might act as key barrier. Silver daily chart.
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XAG/USD revisits weekly low near $49.50 as Fed rate hold bets remain firm
