Silver Price Forecast: XAG/USD consolidates around $58 as Fed’s policy comes into spotlight

• Silver price trades sideways around $58.00 as investors await the Fed’s monetary policy announcement.

• The Fed is expected to cut interest rates by 25 bps on Wednesday.

• Investors await the US JOLTS Job Openings data for fresh cues on the current status of labour demand.

Silver price (XAG/USD) trades in a tight range around $58.00 during the late Asian trading session on Tuesday. The white metal turns sideways as investors await the monetary policy announcement by the Federal Reserve (Fed), scheduled for Wednesday.

The CME FedWatch tool shows that the probability of the Fed cutting interest rates by 25 basis points (bps) to 3.50%-3.75% in the December policy meeting is 89.4%.

Lower interest rates by the Fed bode well for non-yielding assets, such as Silver.

Fed dovish expectations have been prompted by cooling job growth. New York Fed Bank President John Williams also warned of slower economic growth and weak labour demand in his speech in late November, while supporting the need for more interest rate cuts.  "Economic growth has slowed, and the labor market gradually cooled," Williams said, adding that there is room for a further adjustment in the near term.” William’s dovish interest rate guidance also led to a significant jump in the Fed’s monetary easing expectations.

For more cues on the United States (US) labour market conditions, investors await the JOLTS Job Openings data for October, which will be published at 15:00 GMT. Economists expect US employers to have posted 7.2 million fresh jobs in that period.

Silver technical analysis

XAG/USD trades in a tight range between $56.58 and $59.34 for over a week. The 20-day Exponential Moving Average (EMA) is rising and supports the advance, currently at $54.73, with price holding comfortably above it.

The 14-day Relative Strength Index (RSI) at 68 (near overbought) shows firm momentum, though it has eased from recent peaks, suggesting upside may slow without invalidating the trend.

Trend conditions remain bullish while the 20-EMA continues to climb, and pullbacks would stay shallow as long as the pair holds above the average. If momentum cools further, RSI could drift toward the mid-60s before any deeper correction develops, whereas sustained elevated readings would keep the path of least resistance pointed higher.