Silver Prices at Risk of Falling to $55 Amid Fed Uncertainty

Silver prices are under pressure as a strong US dollar and uncertainty over the Federal Reserve's next move keep buyers cautious. The XAG/USD price traded near $57.43 at about 2:52 am EDT, while Reuters reported an earlier 2% decline to $57.23 per ounce.

The charts point to weak short-term momentum, although support near $55 could still attract buyers. A projected supply deficit offers longer-term support as traders prepare for the Fed decision and key US economic data.

The four-hour chart shows silver trading below its 50-period exponential moving average at $58.30. This moving average now marks the first barrier for buyers after several failed attempts to hold gains near $59 and $60.

Traders will be watching the Fed's decision on Wednesday, July 29, at 2 pm EDT, followed by a press conference at 2:30 pm. A rate increase or firm policy message could strengthen the dollar and push silver toward $55.