Silver consolidates near 20-day SMA following Fed minutes

• Silver drops over 1% and consolidates between $36.00 and $37.00, hovering near 20-day SMA.
• Fed minutes reveal policymakers leaning toward only one rate cut this year.
• RSI points to bullish momentum, but $37.00 remains key breakout level.

Silver price registered losses of over 1% on Wednesday after the US Federal Reserve (Fed) unveiled its June meeting minutes, hinting that policymakers are eyeing just one interest rate cut, instead of the two priced in by investors. Although the Greenback was unchanged, the grey metal tumbled. At the time of writing, as the Asian session begins, the XAG/USD trades at $36.41, up 0.16%.

XAG/USD Price Forecast: Technical outlook

From a technical perspective, consolidation is the name of the game, with XAG/USD seesawing within $36.00 - $37.00 during the last five trading days, meandering around the 20-day Simple Moving Average (SMA) at $36.37.

Momentum is bullish, as indicated by the Relative Strength Index (RSI) at 57, which is poised to move higher. Hence, further XAG/USD upside is seen.

For a bullish continuation, XAG/USD must clear $37.00. A breach of the latter will expose the year-to-date (YTD) high of $37.31. Once hurdled, the next ceiling level would be $37.50 and $38.00.

On the flip side, if the Silver price drops below $36.00, the first support would be the 20-day SMA at $36.37, followed by the $36.00 figure. Once cleared, the next support would be June 30 cycle low of $35.42, ahead of the June 24 low of $35.29, ahead of the 50-day SMA at $34.58.

XAG/USD Price Chart - Daily