• Silver price has refreshed weekly low near $22.50 as the status of Middle East tensions remains unchanged.
• The appeal for the risk-sensitive assets diminished as investors awaited Powell’s speech.
• Silver price demonstrates a sideways performance in a range of $22.45-23.70.

Silver price (XAG/USD) prints a fresh weekly low near $22.50 amid caution ahead of speeches from Federal Reserve (Fed) policymakers this week. The white metal faces a sell-off amid sustained buying in the US Dollar amid caution that resilience in the US economy could force policymakers to lean towards raising interest rates further.

S&P500 futures generated some losses in the European session. The appeal for the risk-sensitive assets diminished as investors await the speech from Fed Chair Jerome Powell, which is scheduled for Wednesday. The US Dollar Index (DXY) recovered sharply from 105.00 as Minneapolis Fed Bank President Neel Kashkari said Monday that the US economy has proved to be resilient despite elevated interest rates but the central bank has a lot of work ahead to tame consumer inflation.

In addition to sustained US Dollar buying and a recovery in bond yields, the demand for bullions has faded due to an absence of further escalation in the Israel-Hamas war. Israeli Prime Minister Benjamin Netanyahu said that his administration is open to a little pause to the ground invasion in Gaza but not to a general ceasefire.

Silver technical analysis

Silver price demonstrates a sideways performance in a range of $22.45-23.70 on a four-hour scale, signaling a sharp contraction in volatility. The 200-period Exponential Moving Average (EMA) at $22.85 continues to provide support to the Silver price bulls.

The Relative Strength Index (RSI) (14) oscillates in the 40.00-60.00 range, which indicates that investors await a potential trigger.

Silver four-hour chart