XAGUSD - Silver will stabilize above $30?!Silver is located between EMA200 and EMA50 in the 4H timeframe and is moving in its medium-term ascending channel. If the decline continues, we can see the demand zones and buy within that zones with the appropriate risk reward.
The first range is suitable for short-term transactions and the second range is suitable for medium-term transactions.
Peter Krauth, author of The Great Silver Bull and publisher of SilverStockInvestor, has stated that silver could achieve substantial gains during a rate-cutting cycle, with advancements in artificial intelligence potentially emerging as a new driver of demand. Krauth examined the silver market and investment opportunities for 2025, highlighting the significant impact of Federal Reserve rate cuts on silver prices, a point supported by historical data.
He explained, “In the last three rate-cutting cycles, if you look at silver prices from trough to peak, silver has, on average, risen by 332%.” Krauth added, “This process might take about one to two years, but it still offers remarkable returns, doesn’t it? You can review the data—this is how silver has historically performed.”
He further noted that if the U.S. economy enters a recession—an outcome many analysts forecast for the first half of 2025—silver could deliver outstanding performance.
Meanwhile, Donald Trump, the U.S. President-elect, has outlined extensive plans to reshape the nation’s energy policies. According to news sources, Trump intends to request funding from Congress to replenish the Strategic Petroleum Reserve. His transition team is preparing a comprehensive energy policy agenda to be implemented shortly after he assumes office.
Trump also aims to repeal President Biden’s clean energy initiatives and prioritize natural gas. He may condition U.S. financial support for the International Energy Agency (IEA) on its refocusing towards oil and gas while countering its emphasis on green energy.
At the same time, analysts at Deutsche Bank have expressed concerns that the Federal Reserve might cancel its anticipated December rate cut. These concerns stem from stronger-than-expected economic resilience, a stable labor market, and persistent inflation above 2.5%.
Although the analysts still forecast a rate cut in December, the risk of a delay has increased. They predict that the federal funds rate will reach 4.375% by the end of 2025, exceeding the estimated neutral range. This suggests that the Fed may maintain higher rates for an extended period.
Furthermore, Deutsche Bank expects the Federal Reserve to lower rates to a neutral range of 3.75-4.00% in 2026 and 2027, as the impact of tariffs is likely to gradually reduce private domestic demand, creating room for more rate cuts in the long term.
