Silver Price Forecast: XAG/USD shifts above $24.00 as Fed’s interest rate peak uncertainty fades

Silver price has comfortably shifted above $24.00 as the USD Index remains weak.
The USD Index is facing pressure as investors are not agreeing that the Fed will hike rates two times more this year.
Fed Barkin has commented that raising rates further could create the risk of a more significant slowdown in the economy.

Sagar Dua FXStreet

Silver price (XAG/USD) has shifted its auction comfortably above the crucial resistance of $24.00 in the early New York session. The white metal has got strengthened as investors have found clarity about Federal Reserve’s (Fed) interest rate peak for now.

S&P500 is expected to open on a positive note considering bullish cues from overnight futures. Market mood is quite cheerful as uncertainty about the interest rate peak has receded after the display of the dot plot by Fed chair Jerome Powell.

The upside in the US Dollar Index (DXY) seems restricted around 102.30 amid the risk-appetite theme. In June’s monetary policy statement, Fed Powell confirmed that two more interest rate hikes are appropriate this year. However, investment banking firm Morgan Stanley sees no more hikes and expects the Fed to hold the rate at 5.1% till it undertakes a 25 bps cut in March 2024.

Meanwhile, Richmond Fed Bank President Thomas Barkin has commented that raising rates further could create the risk of a more significant slowdown in the economy, as reported by Reuters. He further added, "Comfortable doing more on interest rates if coming data doesn't confirm a story that slowing demand is returning inflation to the 2% target."

Silver technical analysis

Silver price is struggling to surpass the 23.6% Fibonacci retracement (plotted from May 26 low at $22.68 to June 09 high at $24.53) at $24.10 on a two-hour scale. The 50-period Exponential Moving Average (EMA) at $23.88 is providing support to the Silver bulls.

The Relative Strength Index (RSI) (14) is looking to shift into the bullish range from the bearish range of 20.00-60.00. An occurrence of the same will activate the upside momentum.

Silver two-hour chart

XAG/USD

Overview
Today last price	24.05
Today Daily Change	0.16
Today Daily Change %	0.67
Today daily open	23.89

Trends
Daily SMA20	23.61
Daily SMA50	24.45
Daily SMA100	23.36
Daily SMA200	22.37

Levels
Previous Daily High	23.94
Previous Daily Low	23.22
Previous Weekly High	24.53
Previous Weekly Low	23.25
Previous Monthly High	26.14
Previous Monthly Low	22.68
Daily Fibonacci 38.2%	23.49
Daily Fibonacci 61.8%	23.66
Daily Pivot Point S1	23.43
Daily Pivot Point S2	22.97
Daily Pivot Point S3	22.72
Daily Pivot Point R1	24.15
Daily Pivot Point R2	24.4
Daily Pivot Point R3	24.86

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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