Silver Price Forecast: XAG/USD trades cautiously below $80 ahead of Warsh’s confirmation hearing

Silver price (XAG/USD) trades almost 1% lower at around $79.00 during the European trading session on Tuesday. The white metal faces selling pressure ahead of the confirmation hearing of United States (US) President Donald Trump’s nominee, Kevin Warsh, for the Federal Reserve’s (Fed) next chairman.

Investors will pay close attention to Kevin Warsh’s comments in his confirmation hearing to get cues on whether Washington’s economic agenda will direct his decisions during his term or if he will focus on preserving the Fed’s independence.

US President Trump has repeatedly criticized the Fed, especially Chairman Jerome Powell, after his return to the White House, for not lowering interest rates aggressively.

Recalling the nomination of Kevin Warch as the replacement of Fed’s Powell on January 30, the Silver price fell by over 30% after posting a fresh all-time high at around $121.60 a day before. The sell-off was driven by Warsh’s historic opposition to Quantitative Easing (QE) in the Fed’s balance sheet, in his previous work at the central bank, under Ben Barnarke’s chairmanship, and a preference for a strong US Dollar.

On the geopolitical front, reports claiming that Iran has agreed to return to the table with the US to resume peace talks seem to be failing to offer support for the Silver price. Since the onset of the US-Iran, the Silver price has reacted positively to expectations of a ceasefire, as lower oil prices, being one of the possible outcome, tend to anchor inflation expectations.

Signs of easing inflation projections discourage central banks from tightening monetary conditions, a scenario that improves the appeal of non-yielding assets, such as Silver.

Silver technical analysis

XAG/USD trades lower at around $79.00 as of writing. The price remains sticky near the 20-day Exponential Moving Average (EMA) at $77.04, indicating a sideways trend. The Ascending Triangle formation on the daily chart strengthens the case of a sharp volatility contraction.

The Relative Strength Index (RSI) at about 54 leans positive but not overbought, hinting at constructive momentum rather than a stretched advance.

On the topside, initial resistance is defined by the horizontal barrier of the triangle formation near $81.52, where a daily close above would open the door to a more convincing recovery phase toward the March 13 high of $85.46. On the downside, immediate attention stays on the advancing border of the above-mentioned chart pattern at around $76.50; a break below these levels would weaken the current constructive tone and expose a deeper pullback toward the psychological level of $70.00.

(The technical analysis of this story was written with the help of an AI tool.)