## Silver Prices Approach $52 and Climb Higher...Investor Focus Shifts Amid US Treasury Yield Weakness

Technically, silver(XAG/USD) is currently maintaining an upward trend. On the daily chart, it is positioned above the 20-day exponential moving average(EMA), and the relative strength index(RSI) is at 59.15, indicating room for further gains. Key technical resistance is identified at $54.50(all-time high), with the first support level at $50.40 where the 20-day EMA is located, and the second support at $44.47.

The bullish outlook is supported by weakness in US Treasury yields. Currently, the 10-year US Treasury yield hovers around 4.00%, but on a weekly basis, it has fallen approximately to 3.4%, continuing its downtrend. As silver is an asset that does not generate interest income, the opportunity cost decreases, accelerating capital inflows into physical assets.

### Expectations of Federal Reserve Rate Cuts and Signals of Entering Easing Cycle

The market’s primary focus is on the Fed’s policy direction. According to CME FedWatch, the probability of a 25 basis point rate cut in December has surged from 50.1% a week ago to 85.3% currently. This indicates that the market largely expects a rate reduction to the 3.50–3.75% range.

This bearish sentiment stems from recent comments by New York Fed President John Williams. He stated, "Current monetary policy is restrictive, but recent measures have eased the tightening," and "there is room for short-term policy adjustments." This has been interpreted as a clear hint at the possibility of further rate cuts.

( Link Between Political Risks and Easing Cycle

Attention should also be paid to potential successors to Chair Jerome Powell. With Kevin Hasset, a former White House economic advisor close to former President Trump, being mentioned as a strong candidate, the market has begun to consider scenarios of an "early end to high-interest-rate policies." If such a candidate takes office, it could accelerate the onset of a medium- to long-term easing cycle.

) Silver’s Additional Upside Potential

From a technical perspective, silver is currently in a stable upward trend. Since RSI has not entered overbought territory and it remains above the 20-day EMA, it is possible in the short term to challenge and surpass $52, heading toward $54.50.

However, if during a correction phase, support is maintained around the 20-day EMA at $50.40, the "dip and rebound" scenario remains valid. Conversely, if RSI drops below the 50 level, upward momentum may weaken, and the price could transition into a sideways trading range, so caution is advised.