Silver Holds Firm As Dollar Slides After Split Fed Decision

Silver price clings to gains on Wednesday late in the North American session, as the Federal Reserve held rates unchanged, which, instead of strengthening the Dollar, weakened it, while US Treasury yields spiked. The XAG/USD trades at $57.17, barely unchanged.

XAG/USD steadies near $57.00 as Fed dissent, surging long-end yields and Dollar weakness drive choppy trading

The Fed's monetary policy statement was barely changed. The central bank noted that the economy is growing steadily despite uncertainty stemming from the US-Iran war. The central bank revealed that productivity growth and capital investment are robust, further strengthening the jobs market.

Worth mentioning that the decision was split, with three dissenters led by the Cleveland Fed's Beth Hammack, Minneapolis Fed's Neel Kashkari, and Dallas Fed's Lorie Logan, who favoured a 25-basis-point rate hike. 

The press conference didn’t provide any remarks worth mentioning. Although the Fed Chair, Warsh, revealed that he’s committed to tackling inflation, he dodges the question of how the Fed will achieve its 2% goal. Meanwhile, the US 30-year Treasury yield spiked by more than 10 basis points to its highest level in almost 20 years, though it failed to boost the Greenback, which is tumbling over 0.40%, according to the US Dollar Index (DXY).

The DXY, which tracks the performance of the US Dollar against six currencies, is down at 100.93, after hitting a six-day low, despite the rise of US yields.

Ahead, the US economic docket will feature the final reading of Q2 2026 US GDP, the release of the Fed’s preferred inflation gauge, and the University of Michigan Consumer Sentiment.

XAG/USD Price Forecast: Technical Outlook

In the daily chart, XAG/USD trades at $57.15, keeping a bearish near-term tone as spot holds well below the latest simple moving average cluster around $64.33 and under a series of descending trend-line resistances, including the more recent lines derived from the $78.83 and $77.02 peaks. The Relative Strength Index (14) hovers near 41, hinting at subdued downside momentum, but with price compressed between immediate trend-line support near $55.98 and the overhead moving averages, the metal remains capped within a broader descending channel.

On the topside, initial resistance aligns with the former support trend line projected from $61.01, ahead of the confluence of the simple moving average triple and a descending trend-line break around $64–65, while a more significant supply zone emerges toward the $80.76 region associated with the longer-term downtrend from $96.62. On the downside, a clean drop through the nearby trend-line support at roughly $55.98 would expose lower levels and extend the prevailing bearish phase, whereas holding above this line could see XAG/USD attempt another corrective bounce back toward the clustered resistance band overhead.