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Silver price (XAG/USD) remains in a narrow trading range near $80.50 during the European session as traders await the Federal Reserve's policy decision. The metal's volatility has diminished amid heightened focus on the Fed's potential rate decision, which could influence inflation expectations and commodity demand. Market participants are closely monitoring the Fed's guidance on interest rates and economic outlook, which may determine the direction of silver prices in the short term. The Fed's upcoming decision carries significant weight for commodities like silver, which are sensitive to changes in monetary policy. A hawkish stance from the Fed could strengthen the US dollar and pressure silver prices, while a dovish approach might weaken the dollar and boost demand for non-yielding assets. Traders are also assessing the interplay between inflation data, central bank actions, and geopolitical risks that could impact silver's price trajectory. For MENA investors, the Fed's policy outcome will shape broader market sentiment and capital flows. Gulf markets often mirror global trends, so a shift in the dollar's strength could affect local currency exchange rates and commodity-linked assets. Key levels to watch include $80.50 (current support) and $82.00 (potential resistance), with technical indicators suggesting a wait-and-see approach until the Fed's decision provides clarity.
