XAG/USD trades modestly higher but struggles to sustain momentum above $60.00 amid expectations of prolonged Fed tightening.
Silver (XAG/USD) edged up to $59.90 on Wednesday, retreating from an earlier two-week high of $60.94. The metal’s gains were limited by expectations that the Federal Reserve will maintain restrictive monetary policy, with markets pricing in at least one more rate hike this year.
Traders remain cautious as higher borrowing costs weigh on non-yielding assets like silver. The metal remains above its 20-day Simple Moving Average near $58.86, but technical indicators suggest only modest bullish momentum, with the ADX at 39 signaling a strong underlying trend.
Resistance is seen at $60.94 and $62.39, while support lies at $58.86 and $55.34. A break below could target the $50 level.