Silver Price Under Pressure Ahead of Fed Decision

Silver prices faced pressure on Wednesday. Traders watched for an upcoming Federal Reserve interest rate decision. The US dollar’s strength also weighed on the metal. Volatility is likely.

The silver market showed weakness below the $60 level. This level acts as a strong psychological and resistance point. A “death cross” indicator formed about two weeks ago, showing a negative trend. This happened when the 50-day EMA fell below the 200-day EMA.

Downside, the $55 level has provided support. The $50 level also holds historical importance. It served as support during the late 1970s and early 1980s. This level was also key during the Great Financial Crisis.

The FedWatch tool indicates about a 40% chance of an interest rate hike. This could lead to further market dissatisfaction. Volatility is expected to increase. Downward pressure on silver remains a significant factor.