• Silver price declines as the Fed looks set to maintain the status quo in its policy meeting on Wednesday.
• The Fed is expected to hold interest rates steady as surging oil prices have de-anchored inflation expectations.
• Heightened Middle East conflicts are expected to limit the downside in the Silver price.

Silver price (XAG/USD) is down 0.5% to near $80.00 in the late Asian trade on Monday. The white metal revisits the three-week low of around $78.00 during the day amid firm expectations that the Federal Reserve (Fed) will maintain a status quo in the monetary policy announcement on Wednesday.

According to the CME FedWatch tool, traders are confident that the Fed will leave interest rates unchanged in the range of 3.50%-3.75%. This will be the second straight meeting when the Fed will hold borrowing rates steady.

Fed’s longer pause after a monetary-easing campaign diminishes the demand for non-yielding assets, such as Silver.

The Fed is expected to leave interest rates steady as surged oil prices due to conflicts in the Middle East involving the United States (US), Iran, and Israel have prompted consumer inflation expectations. Gasoline prices in the US have already increased sharply, raising the burden on households’ income.

The CME FedWatch tool also shows that the Fed is unlikely to cut interest rates before the October policy meeting.

On the global front, heightened geopolitical tensions amid Iran’s conflicts are expected to limit the downside in the Silver price. Safe-haven assets, such as Silver, tend to perform better in an uncertain geopolitical environment.

Silver technical analysis

XAG/USD trades lower at around $80.00 at the press time. The near-term bias leans bearish as spot holds below the 20-day Exponential Moving Average (EMA) near $84.30, confirming a downside break of the recent consolidation band. Price has been posting lower highs while repeatedly failing to reclaim the clustered moving average region, which now tracks the short-term downtrend.

The 14-day Relative Strength Index (RSI) in the 40.00-60.00 range signals a sideways trend.

Immediate resistance aligns at the $82.00–$83.00 area, where recent highs converge just beneath the 20-day EMA and cap rebounds. A break above that zone would expose $85.00 as the next barrier and weaken the current bearish structure. On the downside, initial support stands at the February 20 low of $77.47, with sustained weakness below opening the way toward the February 17 low around $72.00. Bears retain control while price holds beneath the $83.00 region and the declining 20-day EMA.

(The technical analysis of this story was written with the help of an AI tool.)