Silver price is falling again, with XAG/USD trading near $57.30 after another weak session. The two-hour chart shows silver struggling to hold the recovery that followed last week’s drop towa
Silver price is falling again, with XAG/USD trading near $57.30 after another weak session.
The two-hour chart shows silver struggling to hold the recovery that followed last week’s drop toward $55. After bouncing toward the upper-$57s, price has started rolling over again and is now back near the middle of its recent range.
The timing is important because the Federal Reserve’s next policy meeting is only days away.
The Fed’s official calendar shows the October FOMC meeting will take place on October 27-28, with the policy decision scheduled for 2:00 p.m. ET on October 28, followed by the press conference at 2:30 p.m.
The latest XAG/USD two-hour chart still looks fragile.
Silver fell from above $61 earlier this month toward roughly $55.50, then recovered into the $57-$58 area.
But buyers have not been able to build a clean sequence of higher highs.
Instead, price has spent the past several sessions moving sideways between roughly $56.80 and $58.00.
That leaves $57 as the immediate support area.
If it breaks decisively, I would watch $56 first, followed by the recent low around $55.50.
Source: silverprice.org
On the upside, silver needs to get back above $57.80-$58.00 before the recovery starts looking healthier.
The larger resistance zone remains around $58.50-$59.00.
So the short-term chart is not collapsing, but it is not showing convincing bullish control either.
Read also: This Silver Price Prediction Is Almost Impossible to Believe
The main problem is that markets still expect the Fed to remain restrictive.
A Reuters poll conducted from October 16-20 found that 94 of 100 economists expect the Fed to leave rates unchanged at the October 27-28 meeting. But all respondents still expected another rate increase in December.
That is important for silver because even a Fed pause does not automatically mean easier financial conditions.
The U.S. 10-year Treasury yield moved back toward roughly 5.13% today, and higher yields make non-yielding assets such as silver less attractive.
The dollar has also firmed again as Treasury yields and oil prices moved higher. A stronger dollar typically pressures silver because the metal becomes more expensive for buyers using other currencies.
Oil is another factor.
Higher crude prices are keeping inflation concerns alive, which strengthens the argument that the Fed may need to remain restrictive even if it pauses next week.
That combination has already hurt precious metals. Gold fell for a fourth straight session today, and silver was down about 1.4% near $57.18 in the same market environment.
For me, the Fed meeting itself is less important than the message around December.
If policymakers leave rates unchanged but continue signaling that another increase is likely, the silver price could remain under pressure.
A more dovish message, especially if accompanied by lower Treasury yields and a weaker dollar, could quickly improve the setup.
Technically, I would watch:
So silver is falling again not because one new bearish headline appeared, but because the market is still dealing with the same difficult combination: high yields, a firm dollar, inflation pressure and uncertainty over how hawkish the Fed will remain after October 28.
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The post Silver Price Today: Here’s Why Silver Is Falling Again Before the Fed Decision appeared first on CaptainAltcoin.
