- Silver moves higher into bullish territory following dovish Fed.
- US dollar crumbles as the market comes back more into the line of a dovish Fed.
Silver prices are moving into the closing bell on Wall Street higher by almost 2% following a dovish outcome from the Federal Reserve which has weighed on both the rates market and the US dollar.
XAG/USD climbed from a low of $25.7614 to a high of $26.5190 while the greenback plummeted, as measured b he DXTY index, from a high of 92.0040 to a low of 91.9330.
As expected, there were no changes to the benchmark interest rate today in the Federal Reserve's interest rate decision with the target standing at 0.0%-0.25% still. Interest rates on the excess reserves were also unchanged at 0.10%.
However, the median dot plot for 2023 still showed no hike.
This was a bearish factor for the US dollar on Wednesday because the market uses this as a consensus at the Fed for when the central bank might raise rates.
Meanwhile, silver was a better performer compared to the gold price that only climbed around 1% vs the US dollar. The gold to silver ratio consequently fell 1%.
Silver technical analysis
Silver has defied gravity and returned to prior supporting closes on the daily chart in meeting the $26.5140 high on Wednesday.
The outlook has flipped bullish following Wednesday's price action with the precious metal now confirming the bias and support base in the $25.70/90 region.
Daily chart
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4-hour chart
The 4-hour chart shows the 10 SMA crossing up through the 21 SMA as the price breaks the 4-hour resistance of $26.2850.
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