Silver Rally Targets $50 as Fed Bets and Supply Crunch Dominate Silver Market News

Silver Pushes Toward $50 as Fed Bets, Supply Squeeze Drive Momentum

Spot silver started the week strong, tagging a new 14-year high at $47.18/oz. on Monday. That’s a big move, and with no clear resistance until the long-term $49.81 level — and the big psychological target at $50.00 — it’s hard to ignore what this market is trying to do. Buyers are clearly in control, and it doesn’t take a lot of imagination to see that they’ve got their eyes on a major breakout.

At 11:13 GMT, XAG/USD is trading $47.00, up $0.94 or +2.05%.

Dovish Fed Bets and Weak Dollar Add Fuel

Rate cut expectations are doing the heavy lifting. The market’s now pricing in a 90% chance of a 25-bps Fed cut in October, with another one lined up for December at 66% odds.

Last week’s PCE data didn’t get in the way — core inflation held steady at 2.9%, and headline PCE ticked up just a touch to 2.7%. Bottom line: the market wants to believe the Fed is done hiking, and traders are leaning toward an easing cycle.

That’s weighing on the dollar, too. The U.S. Dollar Index slipped to 97.97 — under its 50-day moving average — and that’s giving silver another leg higher. A weaker dollar makes silver cheaper for overseas buyers, and it’s clear that international demand is helping drive this rally.

Supply Tightness and Industrial Buying Still Driving

On the physical side, silver’s got a few tailwinds. Analyst Ross Norman points to two drivers: “increased industrial activity on rate cuts” and higher inventory stockpiling by nations worried about future availability. Silver is now facing its fifth consecutive structural deficit, and with supply chains still shaky, buyers are stepping in while they can.

Add in rising demand from solar, EVs, and electronics, and you’ve got plenty of support underneath. Silver’s even outpaced gold this year — up 53% year-to-date versus gold’s 49%.

Forecast: Bulls in Control, but $44–$40 Zone is Key Support

Technically, silver still has room. Resistance doesn’t really show up until $49.81–$50.00. On the downside, the first support level sits at $44.22, with deeper floors at $41.14, $40.73, and $40.00. The 50-day MA is holding around $40.03 — probably where buyers show up if we get any pullback.

Bottom line: Silver’s got momentum, supportive conditions, and a clear upside target. $50 is in sight — more likely than not, it’s going to test it. Time will tell.

More Information in our Economic Calendar.