• XAG/USD is firm at around the $22.60s area, with traders eyeing Powell and his colleagues.
• Silver Price Analysis: Neutral upwards, but Powell’s press conference could rock the boat.

Silver price tests the higher boundaries of the week, at around $22.70s, as the Fed’s decision looms. Falling US Treasury bond yields and an offered US Dollar (USD) are the main drivers of Silver’s gain of 1.28%.

XAG/USD Price action

Silver price remains neutral to upward biased, as shown by the daily chart. Oscillators like the Relative Strength Index (RSI) turned bullish, while the Rate of Change (RoC) displays that buying pressure is waning. Due to mixed signals, caution is warranted.

For a bullish continuation, the XAG/USD needs to reclaim the $23.00 barrier, exposing the February 3 daily high at $23.59, followed by the $24.00 figure, ahead of the YTD high at $24.62. On the other hand, if the XAG/USD drops below the week’s low of $22.14, that would put into play essential support levels.

Given the backdrop, the XAG/USD first support would be the 50-day Exponential Moving Average (EMA) at $21.94. A breach of the latter will expose the 100-day EMA at $21.91, followed by the 200-day EMA at $21.81, and the 20-day EMA at $21.71.

XAG/USD Daily chart

XAG/USD Technical levels