The price of silver continues its remarkable ascent, having decisively breached several key psychological barriers. As the metal now approaches the significant $60 per ounce level, market tension is mounting. All eyes are on the upcoming Federal Reserve policy decision, an event poised to either validate the current rally or trigger a sharp reversal. Investors are actively debating whether the steep price increase reflects sound fundamentals or has veered into speculative excess.

Speculative Momentum and Rate Expectations

The explosive move in silver prices is largely attributed to speculative positioning by market participants, alongside steady industrial demand. Traders are currently pricing in a high probability of a 25-basis-point interest rate cut at the Fed’s December 10 meeting. Precious metals, which offer no yield, tend to benefit disproportionately from expectations of falling bond yields. This prevailing sentiment has provided substantial tailwinds in recent weeks, granting silver notable relative strength compared to gold.

Key Metrics at a Glance

• Price Action: Closing at $58.80 on Friday, the metal is nearing its 52-week high of $59.15.
• Monthly Performance: The bulls are firmly in control, with the price posting a impressive monthly gain of 22.85%.
• Momentum Gauge: The Relative Strength Index (RSI) stands at 62.0, indicating strong bullish momentum without yet signaling extreme overbought conditions.

Technical Outlook and Prevailing Risks

From a technical analysis perspective, buyers currently dominate the market. The decisive breakout above the €50 mark (approximately $57.50) activated fresh buy signals. The technical picture remains constructive as long as the support level at $51.30 holds. With few historical resistance levels overhead, the path upward appears open, though the round number of $60 acts as the next major psychological target.

Should investors sell immediately? Or is it worth buying Silber Preis?

However, the situation warrants caution. Some traders are already using the elevated price levels to book profits, which modestly tempered the rally’s pace into the weekly close. Should the U.S. central bank adopt a more restrictive outlook for the coming year than markets anticipate, the potential for a sharp disappointment is significant given the extent of the recent climb.

The direction for silver will likely be set in the coming trading week. If the Fed confirms a dovish pivot, a test of the $60 level seems imminent. Conversely, a hawkish surprise could leverage the current high volatility—presently around 35.56%—to precipitate swift corrective moves.

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