News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
XAG/USD Weakens as Dollar Rebounds Before Fed Decision
Traders' Opinions
Summary:
Silver extended its decline on Tuesday as investors adopted a cautious stance ahead of the Federal Reserve's policy decision. A firmer US Dollar and easing concerns over Middle East tensions pressured the precious metal, although lingering geopolitical risks continue to provide underlying support.
Sell
TradingXAGUSD
EXP
57.200
Entry Price
50.000
TP
64.000
SL
56.937 -0.170 -0.30%
0
Point
Flat
50.000
TP
CLOSING
57.200
Entry Price
64.000
SL
Silver prices moved lower on Tuesday, with XAG/USD falling toward $57.55 as traders reduced exposure ahead of the Federal Reserve's interest rate announcement. The rebound in the US Dollar added pressure to the white metal, offsetting support from persistent geopolitical uncertainty.
Market sentiment improved after US President Donald Trump said Washington was holding "good talks" with Iran, raising hopes that diplomatic efforts could prevent a broader regional conflict. The easing in tensions has pushed oil prices lower, helping reduce inflation concerns and reinforcing expectations that the Fed will leave interest rates unchanged this week.
Despite the more optimistic outlook, geopolitical risks remain elevated. Trump warned that military action could resume if negotiations fail, while security incidents across Saudi Arabia, Jordan and Iraq, along with ongoing disruptions in the Strait of Hormuz, continue to keep investors on alert.
Attention now shifts to the Federal Reserve's policy statement and Chair Kevin Warsh's comments. While rates are widely expected to remain unchanged, markets will closely monitor the central bank's guidance for clues on whether policymakers still intend to deliver another rate hike later this year. In my view, any hawkish surprise could strengthen the US Dollar further and keep silver under short-term pressure despite its longer-term bullish outlook.
Technical Analysis
Silver is showing signs of renewed bearish pressure after failing to sustain its recovery from the July lows. On the 4-hour chart, price has broken below a rising wedge formation while continuing to trade beneath the long-term descending trendline that has capped every major recovery since June. The rejection from the $59.50-$60.00 resistance area suggests sellers remain firmly in control, with the recent bounce proving to be corrective rather than the start of a new bullish leg.
The breakdown below the wedge neckline has shifted the near-term bias back to the downside. The $57.00-$57.20 region is acting as the first layer of support, but repeated tests have weakened this level. A decisive close beneath it would confirm the bearish breakout and expose the next major support around $50.00, where a significant demand zone and previous swing lows are located. Failure to defend that area would reinforce the broader downtrend and increase the risk of an even deeper correction.
For buyers to regain control, Silver must first reclaim the broken wedge support near $58.20-$58.50, which has now turned into resistance. A sustained move above this region would shift focus back toward $60.00, where the descending trendline and previous swing highs converge. Only a convincing breakout above both barriers would invalidate the current bearish outlook and signal that a broader recovery is underway.
Momentum indicators also favor the downside. The Relative Strength Index (RSI) has rolled over after failing to reach overbought territory, reflecting fading buying interest and strengthening bearish momentum. Meanwhile, the MACD has produced a bearish crossover below the signal line, with the histogram slipping deeper into negative territory. This loss of momentum supports the view that sellers are regaining control following the failed breakout attempt.
TRADE RECOMMENDATION
SELL SILVER
ENTRY PRICE: 57.20
STOP LOSS: 64.00
TAKE PROFIT: 50.00
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.