Silver Price News: XAG/USD bulls approach $26.00 on dovish Fed hike, upbeat options market signals

NEW YORK (May 3) Silver price (XAG/USD) grinds higher during a three-day uptrend to early Thursday in Asia, near up 0.50% intraday near $25.70 by the press time. In doing so, the bright metal justifies the US Federal Reserve’s (Fed) hesitance in suggesting further rate hikes, despite lifting the benchmark rates by 0.25%, as well as the upbeat options market sentiment.

That said, the one-month risk reversal (RR) of the Silver price, a gauge of the spread between the call and put options, prints the strongest bullish level of 0.1000 in three weeks by the end of Wednesday’s North American session. It’s worth noting that the daily RR dropped the most since April 18 the previous day. Even so, the Silver options market signals remain bearish for May, after a downbeat April.

Given the recently upbeat options market signals, coupled with the US Dollar’s failure to cheer the Fed’s rate hike, the Silver price may witness further advances.

However, today’s European Central Bank (ECB) decision and the risks surrounding the US default and banking crisis will be the key to watch for fresh impulse.

FXStreet