Silver Price Forecast: XAG/USD stalls near $38.00, traders await Fed's decision

• Silver consolidates above 20-day SMA at $37.88, signaling indecision near key support.
• RSI remains bullish but flat, reflecting lack of momentum ahead of Fed rate decision.
• Break above $38.50 opens path to $39.00; below $38.00 risks $37.31 and $37.00 support levels.

Silver price post back-to-back doji candles, near the $38.00 figure, as the grey metal market consolidates ahead of the Federal Reserve monetary policy decision.

Mixed signals in the financial markets, with a strong US Dollar gaining 0.24% in the day as depicted by the US Dollar Index (DXY) and falling US Treasury yields, kept traders on the sidelines. The XAG/USD trades at 38.18, virtually unchanged.

XAG/USD Price Forecast: Technical outlook

Silver found a bottom near $38.00, slightly above the 20-day Simple Moving Average (SMA), which is acting as a strong demand area near $37.88. Momentum shows that neither buyers nor sellers are rocking the boat, according to the Relative Strength Index (RSI), staying bullish but flat. However, the latter were the ones that drove XAG/USD from around yearly highs of $39.52 toward the current spot price.

If XAG/USD climbs back above $38.50, $39.00 would be the next area of interest. Overhead lies the YTD high at $39.52. On the other hand, a drop below $38.00 exposes the 20-day SMA at $37.88, followed by the June 18 peak at $37.31, before challenging $37.00.

XAG/USD Price Chart - Daily