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Silver (XAG/USD) remains in a consolidation phase above $79.00 during the Asian session as traders await the upcoming Federal Reserve's (Fed) Federal Open Market Committee (FOMC) decision. The metal lacks clear directional momentum, with prices fluctuating within a tight range amid cautious market positioning. Analysts note that the bearish bias remains intact due to the Fed's potential to raise interest rates, which typically reduces the appeal of non-yielding assets like silver. The Fed's monetary policy decisions significantly impact silver prices, as higher interest rates increase the opportunity cost of holding commodities. With the FOMC meeting approaching, traders are likely to remain hesitant, limiting volatility and keeping the market in a consolidation phase. A break below $79.00 could trigger further downside, while a sustained move above $80.00 might attract buyers. The outcome of the Fed's rate decision and subsequent economic data will be critical for the metal's near-term trajectory. For traders, the key focus will be on the Fed's guidance regarding future rate hikes and inflation expectations. A hawkish stance could pressure silver further, while a dovish outcome might provide a short-term boost. Investors should also monitor technical levels, including the 50-day moving average and the $75.00 psychological support. Given the current bearish bias, risk management strategies such as stop-loss orders near critical support levels will be essential to mitigate potential losses.
