Silver prices stabilize at the 200-day SMA ahead of the Federal Reserve’s policy announcement, capping directional bets.
Silver (XAG/USD) trades near $70.00, unchanged on Tuesday, after retaking its 200-day Simple Moving Average (SMA) as traders await the Federal Reserve’s monetary policy decision. The metal’s muted response follows a weaker US Dollar (USD) and lower oil prices, driven by a US-Iran framework agreement easing geopolitical tensions.
Prior to the agreement, silver had fallen over 30% from pre-war levels, behaving more like an interest-rate-sensitive asset than a safe haven. The energy shock had led markets to scale back Fed rate cut expectations, even pricing in a potential hike. While easing inflation concerns have attracted buyers, traders remain cautious ahead of the Fed’s announcement.
Technical indicators show a bearish near-term bias, with XAG/USD below the 100-day SMA at $78.54 and just above the 200-day SMA at $68.74. The Fed’s decision is expected to determine whether silver extends its recovery or reverses recent gains.