Silver Price Forecast: XAG/USD Returns Below $23.00, Fed Powell Speech in Focus

• Silver price juggles below $23.00 as attention focuses on Fed’s Powell speech.
• Fed Powell is expected to provide guidance on interest rates.
• Silver price is struggling to stay above the 50% Fibonacci retracement at $22.85.

The price of the Silver (XAG/USD) It consolidates in a narrow range below the crucial resistance of $23.00 at the beginning of the American session. The white metal struggles to find direction as investors await Federal Reserve (Fed) Chairman Jerome Powell’s speech.

It would be worth seeing whether Fed Powell will join his teammates who are supporting keeping interest rates unchanged in the 5.25-5.50% range due to rising US bond yields or discuss the desirability of a further tightening policy.

The S&P 500 opens on a cautiously positive note as investors begin to digest the risks of escalating tensions in the Middle East. Dollar Index (DXY) corrects to near 106.00 ahead of Fed Powell’s interest rate talk. While the US 10-year Treasury yields rose to 4.94%, indicating that investors expect a hawkish interest rate guidance from Jerome Powell.

Meanwhile, the US Department of Labor reported a decline in weekly jobless claims for the week ending October 13. It also stated that people filing for unemployment benefits for the first time in the week ending October 13 were 198,000, below expectations of 212,000 and the previous release of 211,000.

Silver technical analysis

Silver price is struggling to stay above the 50% Fibonacci retracement (traced from the August 30 high at $25.00 to the October 3 low at $20.68) at $22.85 on a two-hour scale. The short-term bias for the white metal is bullish as it is trading comfortably above the 50-period EMA, which is trading at $22.74.

The Relative Strength Index (RSI) (14) falls within the range of 40.00-60.00, indicating a range-bound move.

2 hour chart