Silver remained under pressure Tuesday as the U.S. dollar strengthened and uncertainty over the Federal Reserve's next move kept buyers cautious. XAG/USD traded near $57.43 at about 2:52 a.m. EDT, while Reuters reported an earlier 2% decline to $57.23 per ounce. The firm dollar and Fed policy uncertainty drove the pullback. A projected supply deficit offers longer-term support as traders prepare for the Fed decision Wednesday, July 29 at 2 p.m. EDT and key U.S. economic data Thursday.
Silver Trades Below $58.30 on 4-Hour Chart
The four-hour chart shows silver trading below its 50-period exponential moving average at $58.30. That moving average now marks the first barrier for buyers after several failed attempts to hold gains near $59 and $60.
The relative strength index stood near 42, below the neutral 50 level. This reading confirms weak momentum, but does not show deeply oversold conditions. Immediate support sits near the session low of $56.71. A break below that level would shift attention toward the $55 area, where buyers stepped in earlier this month.
Daily Chart Shows Silver Below 50-Day EMA at $63.69
The daily chart presents a more cautious picture. XAG/USD remains well below its 50-day EMA at roughly $63.69, while the daily RSI near 42 shows that sellers still have the upper hand. A daily close below $55 would weaken the current base and increase the risk of a move toward the low-$50 range.
Dollar Index Reaches 101.51 as Gold-Silver Ratio Climbs to 70.47
The Dollar Index traded near 101.51, above its 50-period EMA at 101.20. Its RSI near 62 also showed positive momentum. The dollar reached a one-month high as traders raised the probability of a Fed rate increase, making dollar-priced metals more expensive for overseas buyers.
The gold-silver ratio also climbed to about 70.47, above its 50-day EMA at 66.61. A rising ratio means gold is outperforming silver.
Fed Announces Policy Decision Wednesday, July 29 at 2 p.m. EDT
The Fed will announce its policy decision Wednesday, July 29 at 2 p.m. EDT, followed by a press conference at 2:30 p.m. EDT. Markets assigned a 62% probability to unchanged rates and a 38% chance of at least a quarter-point increase.
Traders will then turn to second-quarter GDP and June PCE inflation data Thursday at 8:30 a.m. EDT. For now, the silver price outlook remains cautious below $58.30, with support holding near $55.
FAQ
What price level did silver trade at on Tuesday?
Silver traded near $57.43 at about 2:52 a.m. EDT on Tuesday, while Reuters reported an earlier 2% decline to $57.23 per ounce.
When will the Federal Reserve announce its policy decision?
The Fed will announce its policy decision Wednesday, July 29 at 2 p.m. EDT, followed by a press conference at 2:30 p.m. EDT. Markets assigned a 62% probability to unchanged rates and a 38% chance of at least a quarter-point increase.
What technical levels are traders watching for silver?
The four-hour chart shows silver trading below its 50-period exponential moving average at $58.30. Immediate support sits near the session low of $56.71, with the $55 area marking a key level where buyers stepped in earlier this month.
