Silver Strategy - Fed's Neutral to Dovish Stance, Silver Recovers to $32

Fundamental Analysis
Last night, the preliminary reading of U.S. nonfarm unit labor costs for Q3 was recorded at 1.9%, higher than the expected 1% and with the previous figure revised up from 0.4% to 2.4%, indicating rising costs for businesses to pay employees, which is not favorable for continued inflation reduction. However, the market is eagerly anticipating that if Trump returns as U.S. president, he will use fiscal stimulus and pressure the Fed to maintain a dovish stance, potentially boosting the stock market to new highs. This morning's Fed rate decision met market expectations of a 25-basis-point rate cut, and Chair Powell's comments remained neutral to dovish, keeping the outlook for a loose environment intact, aiding silver’s recovery after a substantial correction.

Technical Analysis
On the hourly Bollinger Band chart, silver has been consolidating sideways at the bottom and has now started to rise, widening the channel upward and adding uncertainty to the downtrend structure, potentially ending the daily correction phase. Therefore, those without positions may try to enter a long position at short-term support, while conservative traders could wait for a solid recovery above the $32 mark to find entry opportunities.

Trading Recommendation
Enter a light long position at $31.58 on silver’s retracement, targeting $32.49, with a stop loss at $31.00.

Support: $31.01; Resistance: $32.49.

Disclaimer: The above content is for reference only and does not represent the platform’s stance. Stick to your strategy and apply appropriate risk controls.