Silver Price Analysis: XAG/USD finds some light ahead of Fed meeting

The XAG/USD stands firm near $24.90 in Wednesday's session.
US Treasury yields are mixed with some rising and others declining.
Jerome Powell's presser and the updated Dot Plots may fuel volatility in the bond market.

Patricio Martín FXStreet

In Wednesday's session, the XAG/USD traded at $24.90, marking a 0.20% increase. While investors await the Federal Reserve (Fed) decision, the US Treasury bond yields, often seen as the cost of holding non-yielding metals, remain calm but could face aggressive movements if the bank delivers a dovish or hawkish surprise.

Markets will closely look at the updated Dot Plots and see if the Fed officials still see 100 bps of easing in 2024. As for now, Jerome Powell was seen somewhat dovish in his testimony before Congress while the Fed officials remained cautious. Meanwhile, the odds of a cut in May remain low while the doves continue to bet on the easing cycle to kick off in June.

XAG/USD technical analysis

Based on the indicators of the daily chart, the Relative Strength Index (RSI) for the XAG/USD pair leans positive, predominantly displaying values in the 60s range. This reveals a dominance of buyers in the market, deepening the positive terrain. Combined with the decreasing green bars of the Moving Average Convergence Divergence (MACD) histogram, momentum seems to shift towards a slight downturn. Still, the bullish phase with moderate volatility is maintained.

From a Simple Moving Average (SMA) analysis perspective, the pair is above the 20, 100, and 200-day SMAs, suggesting that the bulls have firm control in the overall trend.

XAG/USD daily chart

XAG/USD

Overview
Today last price	24.96
Today Daily Change	0.05
Today Daily Change %	0.20
Today daily open	24.91

Trends
Daily SMA20	23.8
Daily SMA50	23.16
Daily SMA100	23.41
Daily SMA200	23.32

Levels
Previous Daily High	25.16
Previous Daily Low	24.73
Previous Weekly High	25.45
Previous Weekly Low	24.01
Previous Monthly High	23.5
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	24.89
Daily Fibonacci 61.8%	24.99
Daily Pivot Point S1	24.71
Daily Pivot Point S2	24.51
Daily Pivot Point S3	24.29
Daily Pivot Point R1	25.14
Daily Pivot Point R2	25.36
Daily Pivot Point R3	25.56

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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