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Silver prices (XAG/USD) fell 0.5% to near $80.00 in late Asian trading, hitting a three-week low of $78.00. The decline is driven by expectations that the Federal Reserve will maintain its current monetary policy stance when it announces its decision on Wednesday. Traders are closely monitoring the Fed's meeting, as any hints of prolonged high interest rates could weigh further on silver, a metal sensitive to rate changes and inflation trends. The move reflects broader market caution ahead of the Fed's policy statement. Silver's performance is often tied to real interest rates, which influence the opportunity cost of holding non-yielding commodities. A dovish pivot from the Fed could spark a rebound, while a hawkish stance might deepen the decline. Investors are also watching technical levels, with support at $78.00 and resistance near $82.00. For Gulf and MENA investors, the Fed's decision will shape global risk appetite and commodity demand. A prolonged tightening cycle could pressure emerging markets, including Gulf economies reliant on trade and commodity exports. Traders should monitor the Fed's statement and subsequent market reactions for short-term trading opportunities.
