Silver (XAG/USD) remained capped just below the $68.00 level on Wednesday, pulling back to session lows below $66.50 during the Asian session. This price action comes as market expectations for tighter monetary policies from major central banks, including the Federal Reserve, and a strong US Dollar—evidenced by the USD Index consolidating above 100.00—continue to act as headwinds for precious metals [1].
Trading volumes have been unusually low in the first half of the week, attributed to a three-day holiday in Japan. The recent decline in oil prices has provided some support to silver, but overall, market participants are awaiting key developments at the UN Summit, particularly meetings involving US President Donald Trump, Iranian President Masud Peseshkian, and Chinese President Xi Jinping, before making significant investment decisions [1].
From a technical perspective, XAG/USD is trading at $66.24 and remains in a consolidation phase, with price action largely confined between $62.00 and $68.00. Momentum indicators such as the RSI and MACD show a lack of clear directional bias, with the RSI near the 50 midline and the MACD around the zero line. Bulls have repeatedly been capped at the $68.00 area throughout September, and a confirmed breakout above this level could expose highs between $71.12 and $71.56 seen in late August and mid-June. On the downside, support is expected around $64.60 and further at $62.30, with a break below these levels potentially triggering a large Head & Shoulders pattern and increasing bearish pressure toward the August lows near $60.90 and the mid-$59.00s [1].
CONCLUSION
Silver prices are currently range-bound, with market participants awaiting further direction from upcoming geopolitical events at the UN Summit. Technical indicators suggest a neutral outlook, with key resistance at $68.00 and support at $62.30. The market remains cautious amid low trading volumes and a strong US Dollar.