- Silver price falls near $30.30 as investors remain cautious ahead of the Fed’s monetary policy meeting.
- Traders have fully priced in a 25 basis point interest rate cut by the Fed.
- Economists see the Fed cutting interest rates three times in 2025.
The price of Silver (XAG/USD) falls near $30.30 in the North American session on Wednesday. The white metal declines as investors remain cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement at 20:00 GMT.
According to the CME FedWatch tool, traders have priced in an interest rate cut of 25 basis points (bps), which will push lending rates lower to 4.25%-4.50%. Therefore, investors will pay close attention to the Fed’s dot chart, which shows where policymakers see the federal funds rates heading over the medium and long term.
A Bloomberg survey from Dec. 6 to 11 showed that economists see the Fed cutting interest rates three times next year, assuming progress on the disinflation process has slowed more than anticipated. The survey also indicated that economists have become more concerned about the upside risks to inflation than the downside risks to employment, given President-elect Donald Trump’s policies, including mass deportations, higher import tariffs and tax cuts.
Ahead of the Fed meeting, the US Dollar Index (DXY), which tracks the value of the Dollar against six major currencies, consolidates around 107.00. Meanwhile, 10-year US Treasury yields rise to nearly 4.40%. Higher yields on interest-bearing assets weigh on non-yielding assets, like Silver, by increasing their opportunity costs.
Silver technical analysis
The price of Silver falls to a new two-week low near $30.20 on Wednesday. The white metal weakens after breaking below the 20-day EMA, which is trading around $30.95.
The 14-day Relative Strength Index (RSI) is oscillating within the range of 40.00-60.00, suggesting a sideways trend.
Looking down, the ascending trend line around $29.50, which is drawn from the February 29 low of $22.30 on a daily time frame, would act as key support for the Silver price. To the upside, the horizontal resistance drawn from the May 21 high of $32.50 would be the barrier.
Silver daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
