Silver Price Forecast: XAG/USD languishes below $74.00 ahead of Fed interest rate decision
Silver (XAG/USD) edged up from three-week lows near $72.00 earlier on Wednesday, but it failed to find acceptance above $74.00, and is trading practically flat on the daily chart at $73.10 at the time of writing. The US Dollar (USD) remains moderately bid, with all eyes on the US Federal Reserve’s (Fed) monetary policy meeting, due later on Wednesday.
The Fed is widely expected to keep interest rates unchanged, but Chairman Jerome Powell, who will likely be at its last meeting in front of the central bank, has to decide between remaining on the Board of Governors or leaving the bank as US President Donald Trump requested.
Looking forward, the TD Securities commodity team sees room for further depreciation if the war in the Middle East hampers growth and raises carry costs: "Silver is also likely to drop sharply if inflation causes the economy to slow and increases the cost of carry. A weak economy would reduce industrial demand, while higher rates would erode investor interest."
Technical Analysis: The bearish trend remains intact
XAG/USD is trading near $73.00 amid a near-term bearish trend from mid-April highs above $83.00. The pair found support at the 50% Fibonacci retracement of the March-April rally, near $72.00, but upside attempts remain limited for now.
The 4-hour Relative Strength Index (RSI) hovers below the 50 line, and the Moving Average Convergence Divergence (MACD) histogram remains below zero, pointing to a neutral-to-negative tone, with the pair lacking momentum to sustain a significant recovery.
Bulls would need to break session highs in the mentioned $74.00 area and last week's highs between $76.70 and $77.00 to negate the bearish structure and attract buyers to retest the $80.00 psychological area.
On the downside, a break below the $72.12 Fibonacci floor would expose deeper supports at the 61.8% Fibonacci retracement near $69.50 ahead of the April 7 low, near $68.30.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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