Silver Price Teeters on Edge Ahead of Fed Decision

The price of silver (XAG/USD) has been fluctuating within a narrow range of $55.00 to $62.00 in recent weeks, with hawkish Federal Reserve expectations capping upside attempts.

A potential break from this range could be triggered by the Fed's interest-rate decision on Wednesday, which is widely expected to keep rates unchanged at 3.50%-3.75%.

A surprise rate hike would likely strengthen the US Dollar and push US Treasury yields higher, increasing the opportunity cost of holding non-yielding assets like silver.

Such an outcome could trigger a break below the lower end of its recent range at $55.00, while a dovish hold by the Fed could provide relief for silver, but it's not the base-case scenario.