Silver Price Forecast: XAG/USD bounces up to $41.80 as the Dollar loses steam

• Silver trims losses and returns to the upper range of the $41.00s, after bouncing from $41.10 lows
• The US Dollar recovery loses momentum amid a moderate risk appetite on Thursday.
• XAG/USD's has a strong support area between $41.11 and $41.40.

Silver's (XAG/USD) is paring previous losses on Thursday's early European session. The precious metal has bounced at $41.20, returning to levels around $41.80 as the Dollar recovery loses steam amid a mild risk-on mood.

Precious metals pulled back from highs on Wednesday following a spike higher after the Federal Reserve confirmed a 25 bps rate cut and further monetary easing in the coming months.

The US central cut rates, as expected, and released a new "dot plot" anticipating 50 bps further cuts in 2025 and another quarter-point cut for next year. Somewhat later, Fed Chairman Powell curbed hopes of steep monetary easing, highlighting the challenges ahead stemming from the increasing price pressures, and provided a new impulse to the US Dollar.

Technical analysis: XAG/USD reversal contained above $41.10

The technical pìcture shows bearish pressure, with the Relative Strength Index and the MACD at negative levels, yet with the positive market sentiment adding weight to the USD recovery and support above $41.00 challenging Dollar bulls.

The pair, so far, remains above the trendline support from September 2 lows, now at 41.40, and the mentioned September 17 low, at $41.10. If these levels give way, the next targets are the $40.55 (September 8 low) and the $40.00 Psychological level.

To the upside, the intra-day resistance at $42.25 is the first significant hurdle for a potential bullish reaction. Further up, the targets are Wednesday's high at the  $43.00 area and the 261.8% retracement of the September 8 rally, at $43.55.