Silver Price Forecast: XAG/USD Holds Above $69.00 as Traders Assess Fed Stance

Silver spot traded near $69.21 during Thursday's Asian session, edging higher after posting a decline in the previous session. Market focus centers on Federal Reserve Chair Warsh's speech scheduled for Friday at the annual Jackson Hole symposium, as investors seek clues on future monetary policy direction.

**Fed Stance Weighs on Appeal of Non-Yielding Assets**

The Fed decided to hold interest rates steady at Wednesday's June meeting while signaling a potential rate hike later this year. This stance pressures silver—as a non-yielding asset, its holding cost rises in a higher-rate environment, reducing its appeal. However, after the US and Iran signed a memorandum of understanding to end the Iran war, crude oil prices retreated, easing energy-driven inflation concerns, prompting some funds to flow back into the precious metals market for safe-haven demand.

**Technical Outlook Remains Biased to Downside**

The daily chart shows silver spot trading below the middle band of the Bollinger Bands and well beneath the 100-day simple moving average, keeping the short-term bias tilted lower. The Relative Strength Index hovers near 45, indicating weak buying momentum after the recent pullback rather than oversold conditions. This suggests rebounds are more likely to face selling pressure while prices remain below the overhead resistance level. To the upside, initial resistance sits at the $70.00 psychological level, with the next barrier at the Bollinger Band mean of $71.45, followed by the 100-day simple moving average at $77.62.

**Near-Term Focus on Speech Signals**

Market participants believe that if Warsh's Jackson Hole speech delivers clearer signals of a rate hike, silver could face further pressure; conversely, a more dovish tone could provide short-term support for silver. Ahead of the key event, silver may remain range-bound.