- Silver price confidently stabilizes above $23.00 as attention turns to Fed policy.
- The Fed is expected to keep interest rates unchanged at 5.25-5.50%.
- Silver price stabilizes above the horizontal resistance drawn around $23.12, which has become a support.
The price of the Silver (XAG/USD) is moving above the crucial resistance at $23.00 as the US dollar comes under pressure ahead of the Federal Reserve’s (Fed) interest rate decision, which will be announced on Wednesday.
The S&P 500 opens cautiously, as investors remain uncertain about the direction of interest rates. The Fed is expected to keep interest rates unchanged at 5.25-5.50%, but will leave the door open to further tightening of monetary policy.
Any discussion of rate cuts would improve the attractiveness of risk assets and slow the rise of the dollar. Economists at Goldman Sachs expect Fed officials to signal a full percentage point of cuts next year, but to maintain expectations for one more interest rate hike this year in a range of 5.50%-5.75%.
The US Dollar Index (DXY) finds support near 104.80, but upside appears restrained as the Fed is expected not to raise interest rates for the second time in its aggressive tightening policy since March 2022. Meanwhile, The yield on the 10-year US Treasury bond is trading near 4.34%.
The US economy has remained resilient despite rising interest rates, but investors see the economic recovery faltering as the Fed is expected to keep interest rates “higher for longer.” Meanwhile, yields offered by five-year U.S. bonds have risen relative to 10-year U.S. Treasury yields, indicating investors see a short-term slowdown.
Silver technical analysis
Silver price stabilizes above the horizontal resistance drawn from the September 7 high around $23.12, which has become support. The 20-period EMA at $23.20 is providing consistent support to silver bulls. The Relative Strength Index (RSI) (14) is struggling to enter the bullish range of 60.00-40.00.
XAG Two Hour Chart
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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.
