Silver Price Forecast: XAG/USD consolidates below $30 as investors await Fed minutes

• Silver price trades sideways below $30.00 with FOMC minutes in focus.
• The US Dollar and bond yields remain in a bearish trajectory on Fed rate-cut optimism.
• Fed Powell’s speech at the JH symposium will be the key event this week.

Silver price (XAG/USD) trades in a tight range below the psychological resistance of $30.00, with investors focusing on the Federal Open Market Committee (FOMC) minutes for the July monetary policy, which will be published at 18:00 GMT.

Investors await the FOMC minutes release as it will provide fresh cues about the interest rate path this year. In the July meeting, the Fed left interest rates unchanged in the range of 5.25%-5.50% but assured that policymakers are prepared to adjust the monetary policy stance in case risks emerge that could delay the attainment of banks’ goals, such as inflation at 2% along with the maintenance of full employment.

Ahead of the FOMC minutes, the US Dollar (USD) exhibits a subdued performance and remains near seven-month lows. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, hovers near 101.40. 10-year US Treasury yields decline to near 3.80%. Lower yields on interest-bearing assets reduce the opportunity cost of holding an investment in non-yielding assets, such as Silver.

This week, the US Dollar is expected to remain volatile as Fed Chair Jerome Powell is scheduled to speak at the Jackson Hole (JH) Symposium on Friday. Fed Powell would indicate how much the central bank could cut interest rates this year.

Silver technical analysis

Silver price delivers a bullish reversal as a decisive break above August 2 high of $29.20 has faltered the lower high lower low formation on a four-hour timeframe. An upward-sloping 20-period Exponential Moving Average (EMA) near $29.20 is expected to act as a cushion for Silver price bulls.

The 14-period Relative Strength Index (RSI) falls to near 60.00, suggesting that the bullish momentum has concluded for now. However, the bullish bias remains intact.

Silver four-hour chart