Silver (XAG/USD) edged lower to around $32.75 during Asian trading hours on Wednesday as sellers emerged. However, the downside remains limited amid lingering policy uncertainties, including tariff concerns under former US President Donald Trump’s administration. Investors now turn their attention to the upcoming Federal Open Market Committee (FOMC) meeting minutes for further market direction.
Technical Outlook: Bullish Momentum Intact
Silver maintains a bullish tone, with prices holding above the critical 100-day Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI), currently near 66.30, signals continued upward momentum, suggesting the path of least resistance remains to the upside.
Key resistance lies in the $33.30-$33.40 range, aligning with the upper boundary of the Bollinger Band and the February 14 high. A decisive break above this level could open the door for a rally toward $34.55, last seen on October 29, 2024. Further resistance is expected at $34.87, marking the October 22, 2024, peak.
On the downside, initial support is seen at $31.79, corresponding to the February 7 low. The crucial support zone stands at $31.00-$30.90, aligning with the psychological round number and the 100-day EMA. A break below this region could accelerate losses toward $29.70, the low recorded on January 27.
As market participants await the FOMC minutes, silver prices remain poised for further movement, with bullish momentum prevailing unless key support levels give way.
