- Silver price falls near $30.20 on firm bond yields ahead of the Fed’s policy meeting on Wednesday.
- US bond yields hold firm on expectations that the Fed will signal fewer interest rate cuts by 2025.
- US Dollar gives up gains despite better-than-anticipated growth in US retail sales data for November.
The price of Silver (XAG/USD) renews a two-week low near $30.20 in the North American session on Tuesday. The white metal faces selling pressure as bond yields extend their winning streak for the seventh trading day and rise above 4.40%.
Higher yields on interest-bearing assets weigh on non-yielding assets, such as Silver, as they result in high opportunity costs for them.
US Treasury yields have performed well ahead of the Federal Reserve’s (Fed) monetary policy decision on Wednesday. The Fed is expected to cut interest rates by 25 basis points (bps) to the 4.25%-4.50% range, but will choose a “hawkish” guidance for the path of interest rates through 2025.
Macquarie analysts said in a note that the “recent slowdown in the pace of disinflation in the US, a lower unemployment rate than the Fed projected in September, and exuberance in US financial markets. “The US are contributing to this more hawkish stance.”
Meanwhile, the US Dollar Index (DXY), which measures the value of the Dollar against six major currencies, gives up intraday gains and remains flat slightly below 107.00. The US Dollar (USD) gives up gains despite monthly US retail sales data for November beating estimates. Retail sales data, a key measure of consumer spending, rose 0.7%, faster than estimates and the previous release of 0.5%.
Silver technical analysis
The price of Silver hits a new two-week low near $30.20 on Tuesday. The white metal weakens after breaking below the 20-day EMA, which is trading around $31.00.
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, drawn on a daily time frame from the February 29 low of $22.30, 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.
