Silver Price Forecast: XAG/USD Holds Above $58 as Fed Decision Nears

Silver (XAG/USD) is trading near $58.05 during the European session, moving sideways as traders avoid taking large positions…

Silver (XAG/USD) is trading near $58.05 during the European session, moving sideways as traders avoid taking large positions ahead of Wednesday’s Federal Reserve policy announcement. Markets now price in an 85% probability of a 25-basis-point rate cut, a shift that continues to weigh on the US dollar and support precious metals.

Weak labor indicators and softer inflation readings have strengthened expectations that the Fed may begin its easing cycle this week. For silver, lower yields reduce the opportunity cost of holding non-interest-bearing assets, helping the metal remain supported despite short-term consolidation.