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Silver (XAG/USD) remains near $70.00 as it holds above its 200-day Simple Moving Average (SMA), a critical technical level for trend confirmation. Traders are hesitant to take large positions ahead of the Federal Reserve's (Fed) upcoming monetary policy decision, which could influence silver's trajectory. The 200-day SMA acts as a psychological support/resistance level, and its reclamation signals potential bullish momentum if sustained.
The Fed's policy announcement will likely impact silver prices due to its inverse relationship with interest rates. Lower rates typically boost silver demand as a non-yielding asset, while higher rates may pressure prices. Market participants are closely watching for clues on inflation and rate hike timelines, which could drive volatility in the near term.
For Gulf investors, the Fed's decision will set the tone for global risk appetite and commodity markets. Silver's performance post-announcement could trigger broader moves in metals and equities. Traders should monitor the Fed's statement for hints on future monetary easing and watch for a break above $72.00 as a potential bullish signal.
