Silver Slides Nearly 3% Amid Hawkish Fed Outlook

Silver (XAG/USD) has declined by nearly 3% on Wednesday due to the hawkish Federal Reserve (Fed) outlook, which pushed the US Dollar (USD) to a two-month high and weighed on non-yielding metals. Gold (XAU/USD) also fell over 1%. The white metal currently trades at around $65. Although Silver faces headwinds from the Fed's stance, it remains within its range established in mid-August.

The momentum indicators on the daily chart show neither buyers nor sellers are in control. However, a break above the 100-day Simple Moving Average (SMA) near $66 would open up the top of the recent range at around $70, followed by the 200-day SMA at $73. On the downside, a break below the 50-day SMA at $63 would expose $60, and then $55.

The 4-hour chart paints a different picture, with Silver pulling back from $67.50 and testing the 50-period SMA near $65 after slipping below the 100-period SMA at $65.35 and the 200-period SMA at $66. The Relative Strength Index (RSI) is around 45, and an expanding negative Moving Average Convergence Divergence (MACD) histogram indicates growing selling pressure.