Silver pops out of consolidation into bullish territory post dovish Fed

Silver moves higher into bullish territory following dovish Fed.
US dollar crumbles as the market comes back more into the line of a dovish Fed.

Silver prices are moving into the closing bell on Wall Street higher by almost 2% following a dovish outcome from the Federal Reserve which has weighed on both the rates market and the US dollar.

XAG/USD climbed from a low of $25.7614 to a high of $26.5190 while the greenback plummeted, as measured b he DXTY index, from a high of 92.0040 to a low of 91.9330.

As expected, there were no changes to the benchmark interest rate today in the Federal Reserve’s interest rate decision with the target standing at 0.0%-0.25% still. Interest rates on the excess reserves were also unchanged at 0.10%.

However, the median dot plot for 2023 still showed no hike.

This was a bearish factor for the US dollar on Wednesday because the market uses this as a consensus at the Fed for when the central bank might raise rates.

Meanwhile, silver was a better performer compared to the gold price that only climbed around 1% vs the US dollar. The gold to silver ratio consequently fell 1%.

Silver technical analysis

Silver has defied gravity and returned to prior supporting closes on the daily chart in meeting the $26.5140 high on Wednesday.

The outlook has flipped bullish following Wednesday’s price action with the precious metal now confirming the bias and support base in the $25.70/90 region.