Silver Price Forecast: XAG/USD struggles around $33.00 as Fed officials guide restrictive policy stance

• Silver price faces pressure above $33 as Fed policymakers see interest rates remaining in the current range of 4.25%-4.50%.
• Fed officials struggle to gauge the impact of Trump's economic agenda on the economy.
• The broader outlook of the Silver price remains firm amid Trump's tariff agenda.

Silver price (XAG/USD) faces selling pressure above the key level of $33.00 in North American trading hours on Friday. The white metal drops as the US Dollar (USD) gains, with Federal Reserve (Fed) officials continuing to guide a restrictive monetary policy stance. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, advances to near 106.75.

On Thursday, Fed Governor Adriana Kugler said that the central bank should keep borrowing rates "in place" for "some time," noting the net effect of new economic policies by United States (US) President Donald Trump is "highly uncertain" and will depend on the "specifics."

The scenario of the Fed maintaining a restrictive interest rate stance bodes poorly for precious metals such as Silver price.

Meanwhile, fears of President Trump's tariff agenda would keep the Silver price on the frontfoot. On Thursday, Trump announced that he could impose tariffs on lumber and forest products, cars, pharmaceuticals, and semiconductors over the next month or sooner. Market participants expect Trump's tariff agenda will lead to a global economic slowdown.

Investors are also focusing on development in Russia-US talks to end the war in Ukraine. This week, Donald Trump agreed to hold more talks with Russian leader Vladimir Putin for negotiations to have a truce with Ukraine. A positive outcome from peace talks would weaken the safe-haven appeal of the Silver price.

Silver technical analysis

Silver price aims to revisit an over three-month high of $33.40, which it posted on February 14. The outlook of the white metal is bullish as the 50-day Exponential Moving Average (EMA) has been sloping higher, which trades around $31.33.

The 14-day Relative Strength Index (RSI) oscillates in the 60.00-80.00 range, suggesting that the momentum is strongly bullish.

Looking down, the upward-sloping trendline from the August 8 low of $26.45 will act as key support for the Silver price around $30.00. While, the October 22 high of $34.87 will be the key barrier.

Silver daily chart