Silver (XAG/USD) is trading sideways below the key resistance level of $31.00 as investors await the Federal Reserve’s policy decision. The Fed is expected to announce its first interest rate cut in over four years at 18:00 GMT, with a strong possibility of a 50 basis point (bps) reduction to 4.75%-5.00%, according to the CME FedWatch tool. A smaller 25 bps cut is also possible.
The Fed’s focus is on stabilizing the labor market while maintaining its 2% inflation target. Investors are also keeping an eye on the Fed’s dot plot and economic projections. Ahead of the decision, the US Dollar Index (DXY) is down, while 10-year Treasury yields have risen to 3.67%.
Technical Outlook
Silver remains firm above its 20-day Exponential Moving Average (EMA) at $29.40. A breakout above the $31.10 resistance could trigger a fresh rally, supported by the 14-day Relative Strength Index (RSI) rising above 60, indicating potential bullish momentum.


