FX.co ★ GokBoruHunter | XAG/USD, SILVER

Silver (XAG/USD) Daily Outlook Update Silver (XAG/USD) prices rose sharply by almost 4% to nearly $51.85 during the European trading session on Wednesday. The precious metal's price shot up following the results of midterm elections in the United States (US), where Democrats won a majority of seats in both houses of Congress, the federal legislature. The Democrats' win has raised concerns about the continuation of US President Donald Trump's current policy, including Artificial Intelligence (AI) spending. This has driven a sharp rise in the appeal of safe-haven commodities like Silver. But this will likely put pressure on the US Dollar (USD). According to experts at Commerzbank, US stocks and especially the Nasdaq stock exchange, which tends to have higher exposure to technology stocks, may experience pressure due to the upcoming election, since the latest strength of the dollar had been largely linked to "enthusiasm around US equities and the associated capital flows." The problem is that the dollar's weakness may thus "become entrenched during the coming hours" if a negative scenario plays out for US equities, Commerzbank analysts suggest. "In case investment sentiment loses steam, financial markets could shift to expecting a softer period ahead for US growth, which would weigh on the dollar," Commerzbank analysts suggest. Consequently, there is a risk that the Dollar correction will continue, as growth expectations are being revised. Next, the key trigger for silver prices will be the publication of the Non-Farm Payrolls (NFP) in October. It will strongly influence Fed interest-rate expectations. At the moment, the CME FedWatch tool indicates a high probability of a 25 basis point (bps) rate hike to 4.00%-4.25 % at the December meeting. This afternoon, investors will focus on the US ADP Employment Change and the October ISM Services PMI. The daily chart shows XAG/USD trading at $51.77 and maintaining a bearish near-term outlook as it continues to trade below the 20-day Exponential Moving Average (EMA) of $54.83. The metal's inability to move above the short-term trend line, coupled with a Relative Strength Index (RSI) of 36.69, confirms weak momentum that is rebounding from oversold levels but lacks bullish conviction. On the upside, the first resistance is the 20-day EMA at $54.83, and a breakout above this level will be required to change the prevailing bearish sentiment. On the downside, the 11-month low of $48.62 is the key support level; a break below it could push price to $45.