Silver Price Tumbles Ahead of Fed Decision
The Silver price forecast is looking bearish ahead of the Federal Reserve's policy decision. Hawkish Fed expectations have prompted US Treasury Yields to rise significantly, with the 10-year US Treasury Yield reaching a fresh multi-year high near 5.03%. This increase in yields has diminished the appeal of non-yielding assets like Silver.
Economists at ING believe that there will be only one rate hike this year, citing projections for jobs and inflation that suggest no need for multiple hikes. They changed their view to a 25bp Federal Reserve rate hike in September after Chair Kevin Warsh's address at the Jackson Hole symposium.
In the daily chart, XAG/USD is trading at $63.09, below the 20-day Exponential Moving Average (EMA) at $65.12. The Relative Strength Index (RSI) is at 44.4, just under the neutral band, indicating subdued bullish momentum and leaving the metal vulnerable.
Initial resistance for Silver is defined by the 20-day EMA at $65.12, while key support level is the August 19 low at $62.19.