Silver Consolidates Ahead of Fed Decision as Market Awaits Interest Rate Clarity

Silver prices are consolidating ahead of the Federal Reserve's decision on Wednesday. The metal is trading near its participation zone at $57, as investors position themselves for the central bank's policy announcement.

Market expectations favor unchanged interest rates, but there is a growing expectation of additional tightening later this year due to inflation developments and higher energy prices.

Treasury yields and the US Dollar are the primary drivers of short-term positioning in precious metals. Investors will also be watching for signals on inflation risks, policy outlook, and future rate decisions from the FOMC statement and Chair Kevin Warsh's press conference.