Silver (XAG/USD) failed to build on the previous day's modest gains and was unable to break above the $64.00 level during the Asian session on Wednesday, with traders showing hesitation ahead of the highly anticipated Federal Reserve policy decision [1]. Market participants appear to have fully priced in a 25 basis points Fed rate hike, and ongoing oil-driven inflation risks are supporting surging US bond yields. These factors, combined with escalating Middle East tensions, have kept the safe-haven US Dollar firm near a two-week high, which in turn is capping the non-yielding XAG/USD [1].
From a technical standpoint, silver maintains a mildly bearish near-term tone as it remains below the 200-day Exponential Moving Average (EMA) at approximately $64.13 [1]. However, XAG/USD is trading above the 50.0% Fibonacci retracement of the July-August upswing at about $62.94 and the 61.8% retracement at $61.06, indicating some underlying support [1]. Negative MACD readings and a Relative Strength Index around 46 suggest that momentum continues to favor the downside unless XAG/USD can reclaim the 200-day EMA [1].
If silver manages to recover, resistance levels are seen at the 38.2% Fibonacci retracement around $64.82 and the 23.6% level near $67.15 [1]. On the downside, initial support is at the 50.0% retracement near $62.94, with deeper support at the 61.8% level at $61.06. A clear break below this zone would likely reinforce the prevailing bearish bias [1].
No explicit analyst opinions or forward-looking statements beyond the technical outlook and anticipation of the Fed decision are provided in the article [1].
CONCLUSION
Silver remains under pressure below key technical levels as traders await the Federal Reserve's policy decision. The market is currently tilted bearish, with the US Dollar's strength and rising bond yields capping any upside for XAG/USD. A break below support could deepen the bearish trend, while a recovery above the 200-day EMA would be needed to shift momentum.