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Silver (XAG/USD) declined to $69.85 during early European hours, trading below the 100-day SMA amid profit-taking ahead of the Fed's rate decision. The metal retreated from a weekly high as traders remain cautious about potential U.S. interest rate hikes. Technical indicators show a bearish bias, with key support at $68.50 and resistance at $72.00. The 100-day SMA at $71.50 serves as a critical level to monitor for trend confirmation.
This price action impacts commodity traders and precious metals investors, particularly those with exposure to silver ETFs or physical bullion. A break below $68.50 could trigger further downside, while a rebound above $72.00 might attract buyers. The Fed's policy decision on June 14 will be pivotal, as tighter monetary conditions typically weigh on non-yielding assets like silver.
For MENA investors, the dollar's strength against the riyal and local currencies will influence silver's affordability. Traders should watch the Fed's inflation forecasts and the U.S. Dollar Index (DXY) for directional clues. Technical traders may focus on the 50-day SMA crossover for additional signals.
