- Silver price is set to decline further after Fed left interest rates unchanged while clearing any rate cut language in the statement.
Following what can be described as a hawkish hold by the Federal Open Market Committee of the US Federal Reserve, the near-term outlook for silver prices remains fragile. My immediate post-FOMC view is for silver to remain cautious to mildly bearish in the near term, with the technical pattern on the daily chart aligning with this view point.
The Fed kept interest rates unchanged at 3.50%–3.75%, but the signal of note was the heavily divided vote by which the decision was made. This has been recorded as the most divided vote since 1992, pushing yields and the US Dollar higher. Naturally, silver fell as the decision weighed on rate-sensitive assets.
Silver Price Behaviour Pre-FOMC
Silver and gold have also displayed volatility that can only be described as being heavier-than-usual. Both assets are no longer trading as pure safe-haven assets. Rather, the price action on both assets shows two-way volatility, with prices oscillating between resistance and support levels with large whipsaws in between.
The choppy nature of price action presents a unique scenario not seen in decades. Silver has shown a propensity for large, oversized moves, as it is a high-beta asset with industrial use. Therefore, silver is not only tracking gold’s movements but also reflecting the inflationary concerns industries currently face due to higher energy prices.
FOMC Decision and Expected Pathway for Silver Prices
The FOMC decision of 29 April 2026 witnessed a dissension from four board members, three of whom supported the removal of any language that signals the likelihood of rate cuts in the foreseeable future. This was viewed by the markets as being USD-supportive, and precious metals have extended their decline which began late last week.
The market sentiment post-FOMC is one that sees more market uncertainty, a higher-for-longer rate pathway for the Fed, with fewer rate-cut bets on the table. All this comes despite the Fed leaving interest rates unchanged at 3.50%–3.75%, in what is increasingly being seen as a hawkish hold.
Silver price has extended the intraday decline, and is now down 2.45% and set for a third straight day of losses. Prior to the decision, the market tone was already USD-supportive, as the situation in the Middle East is yet unresolved and inflationary expectations remaining in a heightened state. This has more or less been the tone since the oil shock hit the markets.
Silver Price: Technical Outlook
The daily chart shows that the recent decline in silver price is a breakdown of the bearish flag. This breakdown confirms the pattern, with completion of the measured move expected at the 54.66 support mark. This price level was a previous high of 16 October 2025, which was eventually uncapped by the 28 November 2025 candle following a failed attempt on 13 November 2025. This breakdown move would have to overcome several significant pivots along the way to attain completion, the most prominent being the 26 March 68.87 low and the 6 February 63.98 low.
Bullish bias only returns if the price action clears the 79.30 resistance, which makes a case for a northern push towards the 87.22 barrier (11 March 2026) and the 95.59 resistance formed by the 2 March 2026 high. If the latter is uncapped, the bulls have clear skies to attempt a reclaim of the 121.66 all-time high.
