- Silver prices surged nearly 3% following the Federal Reserve’s decision to maintain current interest rates.
- The US Dollar Index declined, providing support for silver’s upward momentum as investors digested the Fed’s dovish stance.
- Technical indicators suggest the potential for further gains, with XAG/USD traders eyeing the $26.00 resistance level.
- Downside risks include a retracement towards the $25.00 support level and below.
Silver prices saw a significant increase on Wednesday after the Federal Reserve opted to keep rates unchanged, resulting in a more dovish stance. This decision led to a decrease in US Treasury yields and continued pressure on the US Dollar Index (DXY), which was down 0.37% at 103.44. As a result, XAG/USD was trading at $25.61, up almost 3%.
XAG/USD Price Analysis: Technical Outlook
The surge in silver pushed prices above the $25.50 level, reaching a daily high at $25.63. Traders are now looking for further upside potential with the $26.00 resistance level in sight. If this level is breached, the next targets would be the highs from April 18, 2022, at $26.21 and March 8, 2022, at $26.94.
In case of a downturn, if prices fall below the high of March 15 at $25.43, a drop towards $25.00 could be expected. Subsequently, key support levels to watch for include the December 22 high turned support at $24.60 and the $24.00 mark.
XAG/USD Price Action – Daily Chart
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Additional Insight:
The surge in silver prices was largely driven by the Federal Reserve’s decision and the resulting impact on the US Dollar Index. The dovish stance of the Fed contributed to the positive momentum in the silver market, with technical indicators supporting the potential for further gains. Traders will be closely monitoring the $26.00 resistance level as a key target, but downside risks remain a concern, particularly if prices retreat towards the $25.00 support level. Overall, the outlook for silver remains bullish, but market volatility and economic developments will continue to influence price movements in the near term.