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Silver consolidated at around the weekly lows on Wednesday, posting losses of over 0.30%, but it remains above the October 8 daily low of $30.12 late in the North American session. At the time of writing, the XAG/USD trades at $30.61, sponsored by higher US Treasury bond yields following the release of the latest FOMC meeting minutes.The minutes showed some officials were looking for a 25 basis points rate cut at the September meeting. According to the minutes, officials agreed that the larger cut approved at the meeting shouldn’t be a sign of concern over the economic outlook or viewed as a signal that the Fed was prepared to rapidly lower interest rates.
XAG/USD Price Forecast: Technical outlook
Silver price stopped its downfall following Tuesday’s over 3.28% loss. Although this could open the door for some consolidation, downside risks remain.Momentum is still favoring sellers, according to the Relative Strength Index (RSI). With that said, the path of least resistance in the short term is tilted to the downside.The XAG/USD’s next support will be $30.12. Once broken, sellers could challenge the psychological figure of $30.00. If surpassed, the confluence of the 100 and 50-day moving averages (DMAs) would be up next at $29.73 and $29.53, respectively.Conversely, if XAG/USD buyers move in and push prices above $30.50, they could lift the grey’s metal price toward $31.00. However, to shift the bias to upward, they must clear the $31.77 October 8 peak.
XAG/USD Price Action – Daily Chart
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