XAG/USD climbs to $58.03 on weaker USD, with traders awaiting the Fed’s rate decision and inflation signals later today.
Silver (XAG/USD) regained ground above $58.00 in early European trading, rising to $58.03 as the US Dollar (USD) weakened. The move follows a two-day pullback, with investors positioning for the Federal Open Market Committee (FOMC) meeting outcome, where the Fed is expected to hold rates steady.
Markets are pricing a roughly 33% chance of a 25-basis-point hike, though the Fed’s stance on inflation could sway sentiment. Above-target inflation concerns may hint at future tightening, potentially supporting the USD. Geopolitical tensions in the Middle East have had limited impact on silver’s recovery so far.
Technical analysis shows XAG/USD forming a triangle pattern, with mixed momentum as the Relative Strength Index hovers near 50. The metal remains mid-range for the past two weeks, reflecting stabilising bias amid uncertain Fed guidance.