FX.co ★ UFCworriers | XAG/USD, SILVER

Silver (XAG/USD) sees a fresh wave of sellers emerge around $54.60 on Wednesday, halting the prior day's move higher out of the $52.70-$52.65 region, which marks its lowest level since November 2025. The precious metal holds below $54.00 in the early hours of the European session, as market participants await a two-day FOMC meeting. In particular, the US Federal Reserve (Fed) is due to announce its interest rate decision later in the US trading session and is expected to keep policy steady. Market participants will focus on the Fed's accompanying statement and Chairman Kevin Warsh's remarks at the post-meeting press conference for further clues on the future policy path. The economic outlook will boost the USD and set the pace for XAG/USD ahead of Thursday's key US economic data: Advance Q3 GDP and the Personal Consumption Expenditures (PCE) Price Index. The two-way price moves since the beginning of this week could be categorized as a bearish consolidation phase after the recent breakdown below strong horizontal support near the $55.00 psychological mark, which should now act as an immediate, strong barrier. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is turning positive above the zero line, hinting at emerging but still fragile upside momentum. At the same time, the Relative Strength Index (RSI) is recovering from oversold territory but remains below 50, reinforcing a capped tone. However, any strength beyond $55.00 will trigger extreme short covering, allowing XAG/USD to rise above $56.00, test the $56.40 resistance, and target $57.00 and the 100 SMA on the four-hour chart. That resistance stands at $57.55, and bulls will need to break above it to reduce overall selling pressure and make the recovery phase sustainable. It should be noted that XAG/USD can continue sliding as long as it trades below $57.55. The problem is that bears in XAG/USD may be waiting for follow-through weakness below $53.50 before pushing lower toward $53.00, with a breakdown of that level setting sights on the yearly low near $52.70-$52.65 hit on Tuesday.