Silver Price Forecast: XAG/USD turns choppy after rallying near $23.70, US yields rebound

Silver price (XAG/USD) turns sideways after a vertical upside move to near crucial resistance of $23.70 in the early New York session. The white metal struggles for a direction as the US Dollar Index (DXY) demonstrates a squeeze in volatility after an unchanged interest rate decision by the Federal Reserve (Fed) as expected.

The Fed delivered a hawkish commentary on interest rates and sees inflation getting controlled in 2026. Interest rates are expected to remain lofty long enough’ till the achievement of price stability.

S&P500 opened on a positive note on Friday, portraying some improvement in appeal for risk-sensitive currencies. While the broader bias is bearish as fears of a global slowdown are intact. The USD Index remains choppy despite the subdued preliminary PMI report for September, released by the S&P Global. The 10-year US Treasury yields rebounded sharply to

The Manufacturing PMI landed at 48.0 in line with expectations and slightly higher than the former reading of 47.9. The economic data has been contracting for a long period, a figure below 50.0 is itself considered a contraction in economic activities. The Services PMI, which tracks a sector that accounts for two-thirds of the US economy, dropped to 50.2 vs. expectations of 50.6 and the former release of 50.5.

Silver technical analysis

Silver price trades in a Rising Wedge chart pattern on a two-hour scale, in which pullbacks are considered buying opportunities by market participants till the volatility contraction. Upward-sloping 20-period Exponential Moving Average (EMA) at $23.48 indicates that the short-term trend is bullish.

The Relative Strength Index (RSI) (14) shifts into the bullish range of 60.00-80.00, which indicates that the bullish impulse has been triggered.

Silver two-hour chart