Silver advances above $73.50 as traders await Fed rate decision

Silver price (XAG/USD) rises to around $73.85 during the early European trading hours on Wednesday. Markets might turn cautious ahead of the US Federal Reserve (Fed) interest rate decision. Traders will also closely monitor the development surrounding the ongoing conflict between the US and Iran.

The Fed is expected to keep interest rates steady between 3.50% and 3.75% amid economic uncertainty and inflation risks. Jerome Powell’s press conference will be closely watched as it could give signals on whether the Fed may shift its stance on future rate cuts or hikes. Any hawkish comments from policymakers could underpin the US Dollar (USD) and weigh on the USD-denominated commodity price.