Silver Price Forecast: XAG/USD retains bearish bias below $55.00 ahead of FOMC

• After a solid rebound from its year-to-date low the previous day, Silver finds further gains elusive.
• The forthcoming FOMC policy announcement is the next focus for traders seeking a clear catalyst.
• Further losses remain the more likely direction, according to the technical picture.

The $54.60 region draws renewed selling in Silver (XAG/USD) on Wednesday, halting the previous day's rebound from $52.70-$52.65, its weakest level since November 2025. With the outcome of the two-day FOMC meeting approaching, the metal remains below $54.00 and holds its intraday losses in early European trading.

An unchanged interest rate decision is widely anticipated when the US Federal Reserve (Fed) concludes its meeting later in the US session. Attention will therefore centre on the accompanying policy statement and remarks from Fed Chair Kevin Warsh at the subsequent press conference for further indications of the policy trajectory. That outlook will shape the US Dollar (USD) and give XAG/USD a fresh catalyst before Thursday's key US economic releases: the Advance Q3 GDP report and the Personal Consumption Expenditures (PCE) Price Index.

Following the recent break beneath strong horizontal support around the psychological $55.00 level, this week's back-and-forth trading could represent bearish consolidation. That former support should now provide a formidable near-term obstacle. Although the Moving Average Convergence Divergence (MACD) indicator is moving into positive territory above zero, signalling nascent but fragile upward momentum, the Relative Strength Index (RSI) remains below 50 despite recovering from oversold levels. Together, these signals suggest that gains remain constrained.

A sustained move above $55.00, however, could prompt sharp short-covering, carrying XAG/USD through $56.00 towards initial resistance at $56.40. Beyond that lie $57.00 and the 100-period Simple Moving Average (SMA) on the 4-hour chart, currently at $57.55. Reclaiming that average would be necessary for bulls to relieve the wider downward pressure and pave the way for a more lasting recovery. Until this key $57.55 barrier is overcome, the risk of additional losses persists.

Before positioning for another leg lower, XAG/USD bears may seek a decisive extension below $53.50. Such a move would put $53.00 in focus; a break there would leave Tuesday's year-to-date low near $52.70-$52.65 exposed.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

XAG/USD price action on the 4-hour chart