Silver Price Forecast: A near-term correction in the offing?

• Silver prices trade close to the $41.00 mark per ounce on Wednesday.
• A technical correction appears likely, with the RSI well in the overbought zone.
• Prospects for further rate cuts by the Federal Reserve underpin the metal.

Prices of Silver advance for the fourth day in a row on Wednesday, trading at shouting distance from the key barrier at $41.00 per ounce.

Fed rate cut bets and a weak Dollar support the rally

The industrial metal manages to maintain its upside trend well in place for yet another day on Wednesday, navigating the area of all-time tops near $41.00 on the back of modest losses in the US Dollar.

The intense move higher in Silver prices and around precious metals in general is propped up by investors' persistent bets on extra rate cuts by the Federal Reserve in the second half of the year, starting as soon as later this month.

Still around the Fed, President Trump's attempts to undermine the Fed's independence via repeated calls for (much) lower interest rates and his recent intentions to fire FOMC Governor Lisa Cook have also given extra wings to Silver in the past few weeks, all against the backdrop of a more politicised Fed lying ahead.

In addition, the resurgence of trade uncertainty, geopolitical effervescence, and increasing inflows into Gold and Silver ETFs have also been bolstering the solid performance of those metals.

Moving forward, investors' attention is expected to be on the upcoming Nonfarm Payrolls data for August on Friday, which should shed further details on the Fed's upcoming interest rate decisions.

What about techs?

Next on the upside for Silver comes its record high at $40.97 (September 3). On the other hand, there are minor supports at the weekly troughs of $38.09 (August 27) and $36.97 (August 20), all preceding the late July floor at $36.22 (July 31).

Momentum looks mixed, as the ADX near 18 signals a still juiceless trend, while the RSI near 73 is indicative of overbought conditions, which could in turn spark a technical correction in the not-so-distant future.