Silver Strategy - FED Officials Change Tone, Silver Unable to Hold $31

Fundamental Analysis:

Yesterday, the U.S. October core CPI month-over-month and year-over-year were recorded at 0.3% and 3.3%, respectively, aligning with previous values and meeting market expectations, indicating no inflationary risk. The Fed’s decision to continue rate cuts in December is likely unchanged, which should theoretically favor gold and silver. However, optimism about Trump’s victory lingers in the market, boosting risk assets and showing high capital concentration, reducing funds for precious metals. Additionally, comments from Fed officials Logan, Moussalian, and Schmid have turned conservative, suggesting the pace of rate cuts should depend on data changes, leading to silver’s failure to hold the $31 level.

Technical Analysis:
In the 1-hour chart Bollinger Bands, silver is pushing down to new lows, with the channel opening shifting from upward to downward, reinforcing the downtrend structure. Hence, those holding no positions may consider short positions on rebounds to resistance levels rather than aggressively bottom-buying.

Trading Recommendation:
Short silver lightly at 30.41, target 29.69, with a stop loss at 31.02.

Support Level: 29.69 Resistance Level: 31.00

This information is for reference only and does not represent the platform's stance. Stick to your own strategy and exercise appropriate risk control.