Silver (XAG/USD) began the week trading in a narrow range above the $64.00 mark during the Asian session, as market participants showed caution ahead of several major central bank events scheduled for the week. The US Federal Reserve is set to announce its rate decision on Wednesday, followed by the Bank of England meeting on Thursday and the Bank of Japan policy update on Friday. Investors are expected to closely monitor these events for guidance on the future policy path of central banks, which will be crucial in determining demand for non-yielding assets like silver [1].
From a technical standpoint, silver remains below the 200-period Simple Moving Average (SMA) on the 4-hour chart at $64.91 and the 38.2% Fibonacci retracement at $64.78. These levels are acting as resistance and are maintaining a bearish bias in the near term. The Moving Average Convergence Divergence (MACD) indicator is also below zero with a slightly negative reading, while the Relative Strength Index (RSI) is around 42, indicating waning momentum after a recent pullback. This technical setup suggests that any significant bullish move would face immediate resistance at $64.78 and $64.91 [1].
Should silver manage to break above these resistance levels, the next hurdles are identified at the 23.6% Fibonacci retracement at $67.15 and the cycle high region near $70.99. On the downside, initial support is seen at the 50% retracement near $62.86, followed by the 61.8% retracement at $60.94, with deeper support levels at $58.21 and $54.74 [1].
Overall, the market appears to be in a holding pattern, with traders hesitant to take strong positions until after the central bank decisions are announced later in the week [1].
CONCLUSION
Silver prices are currently range-bound as traders await key central bank decisions that could influence market direction. Technical indicators point to a bearish bias in the near term, with significant resistance levels capping upside potential. Market participants are expected to remain cautious until further policy clarity emerges.