Silver Price Forecast: XAG/USD refreshes weekly low near $33 as Fed is in no hurry for rate cuts
LONDON (March 21) Silver price (XAG/USD) posts a fresh weekly low near $33.00 in Friday’s European session. The white metal extends its losing streak for the third trading day as the US Dollar (USD) extends its upside on deepening expectations that the Federal Reserve (Fed) will not cut interest rates in the near term.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near 104.00.
The Fed expressed that interest rates won’t be reduced until they seek clarity over how much United States (US) President Donald Trump’s tariffs will dampen economic growth and accelerate inflationary pressures. These signals came after the central bank left borrowing rates unchanged in the range of 4.25%-4.50% for the second time in a row.
The scenario of the Fed maintaining interest rates at their restrictive levels for longer bodes poorly for non-yielding assets, such as Silver.
Meanwhile, fears of Trump imposing reciprocal tariffs on April 2 would limit the downside in the Silver price. Trump’s tariff policies are expected to weigh on global growth. Historically, heightened global uncertainty improves the appeal of safe-haven assets.
Silver technical analysis
Silver price struggles to revisit the flat border of the Ascending Triangle chart pattern formation on the daily timeframe near the October 22 high of $34.87. The upward-sloping border of the above-mentioned chart pattern is placed from the August 8 low of $26.45. Technically, the Ascending Triangle pattern indicates indecisiveness among market participants.
The Silver price declines to near the 20-day Exponential Moving Average (EMA), which trades around $32.95.
The 14-day Relative Strength Index (RSI) falls below 60.00, suggesting that the bullish momentum has come to an end. However, the bullish bias is still intact.
Looking down, the March 6 high of $32.77 will act as key support for the Silver price. While, the October 22 high of $34.87 will be the major barrier.
FXStreet
