The price of silver, symbolized by XAGUSD, comfortably remains above $23.00, showing stability, as attention turns towards the policies of the Federal Reserve.

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• Silver price stabilizes confidently above $23.00 as the focus shifts to Fed policy.

The pair currently trades last at 23.142.

The previous day high was 23.26 while the previous day low was 22.96. The daily 38.2% Fib levels comes at 23.15, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.08, expected to provide support.

Silver price (XAG/USD) shifts auction above the crucial resistance of $23.00 as the US Dollar comes under pressure ahead of the interest rate decision by the Federal Reserve (Fed), which will be announced on Wednesday.

The S&P500 opens on a cautious note as investors remain uncertain over the interest rate guidance. The Fed is widely anticipated to keep interest rates unchanged at 5.25-5.50% but will keep doors open for further policy tightening.

Any discussion about rate cuts would improve the appeal for the risk-perceived assets and dampen the US Dollar. Economists at Goldman Sachs expect Fed officials to signal a full percentage point of cuts next year but to keep expectations of one more interest rate increase this year to a range of 5.50%-5.75%.

The US Dollar Index (DXY) finds support near 104.80 but the upside seems restricted as the Fed is expected to skip raising interest rates for the second time in its aggressive policy-tightening since March 2022. Meanwhile, the 10-year US Treasury yields to near 4.34%.

The US economy has remained resilient despite higher interest rates but investors see the economic recovery faltering as the Fed is expected to keep interest rates ‘higher for longer’. Meanwhile, the yields offered on five-year US bonds have increased from 10-year US Treasury yields, indicating that investors see a slowdown in the near term.

Silver price stabilizes above the horizontal resistance plotted from September 7 high around $23.12, which has turned into a support. The 20-period Exponential Moving Average (EMA) at $23.20 is consistently providing support to the Silver bulls. The Relative Strength Index (RSI) (14) struggles to shift into the bullish range of 60.00-40.00.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.27 at the time of writing. Pair opened at 23.26 and is trading with a change of 0.04 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 23.64, 50 SMA 23.74, 100 SMA @ 23.72 and 200 SMA @ 23.48.

The previous day high was 23.26 while the previous day low was 22.96. The daily 38.2% Fib levels comes at 23.15, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.08, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.06, 22.86, 22.76
• Pivot resistance is noted at 23.36, 23.46, 23.65

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