Silver (XAG) Forecast: Fed’s Rate Call & Retail Sales—Will Bulls Push Higher?

Silver Prices Steady as Traders Await Fed Decision and Economic Data

Silver prices are holding steady on Monday as traders await key economic reports and the Federal Reserve’s policy decision on Wednesday. The market remains in a consolidation phase, with technical levels and external factors guiding near-term movements.

At 11:14 GMT, XAG/USD is trading $33.79, down $0.01 or -0.03%.

Technical Levels Define Near-Term Outlook

Silver remains in a tight range, with last week’s high at $34.08 acting as the first sign of strength. If prices break above this level, upside momentum could push silver toward the next resistance zone between $34.87 and $35.40. On the downside, support sits between $32.53 and $31.81, with the 50-day moving average at $31.67 serving as a crucial indicator of the intermediate trend.

Gold Prices and Fed Decision in Focus

Gold is trading firm near record highs, having recently hit $3,005.04 before pulling back. Traders are closely watching the Federal Reserve’s policy announcement, as a dovish stance could support both gold and silver. Lower interest rates reduce the opportunity cost of holding non-yielding assets, making precious metals more attractive.

Gold’s resilience has been fueled by economic concerns, safe-haven demand, and strong buying interest on price dips. A break above $3,005.04 could signal further gains toward $3,150, while support levels at $2,978.50 and $2,880.25 remain critical for downside protection.

Fed Policy and Economic Reports Could Drive Volatility

The Federal Reserve is widely expected to keep rates steady at 4.25%–4.50%, with traders focusing on the central bank’s outlook for inflation and growth. The Fed’s “dot plot” projections and Jerome Powell’s press conference will be key for gauging future policy moves.

Additionally, Monday’s retail sales report will provide fresh insights into consumer spending trends. A weak reading could fuel recession fears and increase demand for silver as a hedge, while stronger data might reduce safe-haven inflows. Housing market reports, corporate earnings, and trade policy developments will also shape sentiment this week.

Silver Market Forecast: Consolidation with Potential Breakout

Silver’s near-term direction depends on the Fed’s tone and economic data. A dovish Fed and weak retail sales could drive prices higher, while strong economic data or hawkish commentary may limit gains. Traders should watch for a breakout above $34.08 or a breakdown below $32.53 to confirm the next move.

More Information in our Economic Calendar.