Why is silver price flat today? Fed policy shift and $64.46 support levels

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Silver gains 0.78% today to $64.96

Highlights

Silver experienced profit taking, resulting in moderate selling and a period of price consolidation above a key technical level.
Trading was steadier after traders adjusted to reduced expectations for a more hawkish U.S. Federal Reserve stance.
Technical signals are mixed, but buyers are dominating intraday action with silver expected to trade between $64.11 and $65.81 over the next 2 to 3 days.

Profit taking eases as Fed sentiment softens and key level holds

Silver has recently faced profit taking pressure, which has contributed to a brief period of selling and consolidation, according to Fxstreet. This phase has coincided with the asset holding above a key technical level on Thursday, providing a measure of stability within prevailing trading ranges. In addition, Fxstreet reports that sentiment marginally improved as traders responded to reduced expectations for a more hawkish posture from the U.S. Federal Reserve, which in turn may have lessened recent selling activity and maintained support for current levels.

Oscillator strength diverges from broader momentum as resistance caps advance

On the technical front, XAG/USD trades above its MA-20 but remains capped by the MA-50 and is well below the MA-200 on the daily chart. The Ichimoku Kijun sits at $64.46 and serves as immediate support after today's advance. Momentum indicators show mixed signals: MACD points to persistent selling, ADX is neutral, while RSI has moved into buying territory. Both Stoch RSI and CCI are in overbought zones, with Bull/Bear Power confirming intraday buyer dominance and the Awesome Oscillator also supporting the ongoing upward move. This highlights a divergence between downside momentum and short-term oscillator strength.

Range-bound trade likely as volatility persists and breakout risks rise

Looking into the next two to three trading days, XAG/USD is expected to consolidate within a corridor between $64.11 and $65.81, reflecting typical volatility for the current environment. There is a 64% probability of further gains, while the risk of a reversal to the downside stands at 36%. Under the base scenario, price action could remain range-bound; upside requires a confirmed breakout above resistance, whereas renewed selling below $64.46 support may trigger a deeper pullback.

Viktoras Karapetjanc, senior analyst at Traders Union, sees recent silver consolidation as a temporary phase supported by improving sentiment and declining hawkish expectations from the U.S. Federal Reserve. He believes that strong technical support and easing policy risk reinforce stability, while mixed momentum signals suggest further range movement in the short term. The analyst remains constructive on silver’s outlook, expecting consolidation to persist with a tilt toward further gains if support holds. "If current sentiment persists and the Federal Reserve stays dovish, I believe silver is well positioned to maintain its upward path toward new short-term highs."

Earlier, analysts noted that silver was caught between mixed technical momentum and heightened geopolitical risks, leading to cautious, range-bound trading. The latest analysis confirms these conditions persist, with current signals highlighting $64.46 as a pivotal support level for traders to monitor in the coming sessions.

Source of Data: XAG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.