Silver (XAG) Forecast: Price Prediction Points Higher if Fed Confirms 2026 Rate Cuts

Silver Holds Near Record Highs as Traders Brace for the Fed

Spot silver comes into the week sitting at $58.36 after a strong run that pushed to a fresh record at $59.34. Buyers were still willing to lean in last week, but you can feel the market getting a little stretched after a move that’s been running since the $45.55 swing low. With no real ceiling overhead, silver has room — but it’s also at the point where even a small misstep from the Fed could trigger some fast profit-taking.

Supply Tightness Still Doing the Heavy Lifting

The story hasn’t changed: physical tightness is doing real work here. ETF holdings jumped roughly 200 tons on December 3, pushing positioning to the heaviest levels since 2022. That’s not tourist money — that’s real allocation at all-time highs.

Shanghai Futures Exchange inventories sliding to decade lows only reinforced the idea that the squeeze isn’t easing, even with London seeing heavy shipments in November. Traders know that any flare-up in physical stress, especially in Asia, tends to feed straight into price momentum.

Fed Cut Expectations Front and Center

The market spent last week pricing in almost a done deal: an 87–89% chance of a 25-bp cut on December 10. Softer manufacturing data, weaker jobs numbers, and core PCE stuck at 2.8% kept that dovish lean intact.

The dollar hanging near one-month lows gave silver another tailwind. But this week isn’t really about the cut. It’s about the dot plot for 2026. Traders want to see confirmation of two or three more cuts next year; anything else will shake things up fast.

Technicals Still Favor the Bulls — With a Catch

With the moving pivot sitting down at $52.44 and no meaningful resistance above last week’s high, the path higher looks clean. Still, after the kind of run silver just posted, a closing price reversal top is something traders shouldn’t ignore.

A push above $59.34 that can’t hold into the close would be the tell. Support is layered at $58.36, then $56.79, with the pivot as the key line where buyers likely regroup.

Outlook: Consolidation With Upside Bias, But Watch the Price Action

Base case: silver chops between $57 and $60 ahead of the Fed, then makes its next move on Powell’s tone. A friendly cut keeps $60–$62 in play. A stronger-than-expected dovish push opens the door toward $63+.

The bearish outcome is tied to either hawkish guidance or a reversal top, which could send silver toward the pivot — but longer-term bulls won’t flinch at that.

Bottom line: silver’s still a buy on dips, but traders should keep position sizes light into Wednesday. The market wants higher — it just needs the Fed to stay out of the way.

More Information in our Economic Calendar.