Fed decision leaves silver price under pressure amid negative momentum

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Silver slides 2.86% to $50.85 today

Highlights

The US Federal Reserve left rates unchanged on October 29, 2026, with two members supporting a hike, indicating persistent tight policy.
Higher Treasury yields increased the opportunity cost of holding silver, resulting in weaker XAG demand and downward price pressure.
XAG/USD trades below key moving averages, with strong bearish momentum and a projected range of $50.28 to $51.42 over the next 2 to 3 days.

Hawkish Fed stance heightens XAG pressure via rising yield costs

The US Federal Reserve's decision on October 29, 2026, to keep interest rates unchanged with two members favoring a rate hike reinforced the outlook for sustained tight monetary policy, according to Admiralmarkets. This outcome pushed Treasury yields higher, raising the opportunity cost of holding non-yielding assets like silver and dampening investor demand. Elevated rate expectations continued to weigh on sentiment toward XAG, contributing to the market's downside pressure.

Persistent sell bias as technicals reinforce oversold momentum

Below the MA-20 at $51.76, MA-50 at $52.8, and MA-200 at $67.02, XAG/USD now faces immediate resistance from the Ichimoku Kijun at $51.76. Momentum remains negative, with MACD and ADX on the H1 chart indicating persistent sell bias. RSI is at 25.61, confirming oversold conditions, while Stoch RSI, CCI, and Bull/Bear Power collectively reflect strong intraday seller control. The Awesome Oscillator (AO) also corroborates the ongoing downtrend.

Limited reversal chances as downside range and volatility persist

Over the next 2–3 trading days, the expected range is $50.28 to $51.42. The probability of an upside reversal is limited to 30%, with a 70% likelihood of continued declines. Baseline scenario sees price consolidating in a narrow corridor. A decisive move above $51.76 would be needed for a bullish shift, while a drop below $50.28 could trigger renewed selling and further downside volatility.

Anton Kharitonov, expert at Traders Union, sees persistent downward pressure on silver as technical signals confirm strong seller dominance. He notes that the Fed’s hawkish stance and rising yields continue to weigh on sentiment, leaving little room for bullish momentum. Kharitonov believes a move above $51.76 is needed to counter the current negative trend. "Until we see a clear break above resistance, downside risk prevails and caution is warranted."

Previously it was reported that silver faced persistent downside risk due to unfavorable technical and macroeconomic conditions. The latest developments reinforce this bearish outlook, with a break below the $50.28 support now posing a key risk for accelerated selling in the near term.

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.