Silver (XAG/USD) is trading in the lower $73.00 range during Friday’s European session, following a rejection at the $75.00 level earlier in the day. This marks the metal's second consecutive negative week, attributed to a hawkish tilt by the Federal Reserve, which has strengthened the US Dollar and pressured silver prices downward [1].
The Federal Reserve maintained interest rates within the 3.5%-3.75% band. Notably, three policymakers opposed the inclusion of 'easing bias' language in the monetary statement, leading investors to scale back expectations for further rate cuts. According to the CME FedWatch tool, futures markets are now leaning toward a rate hike in 2027 [1].
Fed Chairman Jerome Powell, whose term expires on May 15, has committed to remaining as Governor, positioning himself as a hawkish counterweight to potential pressures from US President Donald Trump on the next Fed chief, Kevin Warsh, to lower interest rates [1].
From a technical perspective, XAG/USD is consolidating just above $73.00, with the broader bearish trend still intact. The Relative Strength Index (RSI) is fluctuating around the neutral 50 line, and the MACD indicates mild but indecisive bullish momentum. Resistance is noted at $74.75, with further barriers at $76.75 and $78.65. On the downside, $72.80 is currently supporting prices, with further support at $71.00 and $68.30 [1].
CONCLUSION
Silver prices remain under pressure, consolidating above $73.00 after being rejected at $75.00, as the Federal Reserve's hawkish stance supports the US Dollar and dampens rate cut expectations. Technical indicators suggest a neutral to mildly bearish outlook in the near term. Market participants are likely to remain cautious amid ongoing Fed policy uncertainty.