Silver Price Forecast: XAG/USD jumps to near $64.40 as rally in oil prices hit a pause

Silver price (XAG/USD) surged to near $64.40 during the European trading session on Thursday, after a pause in the rally of oil prices. Saudi Arabia announced plans to explore alternative ways for shipping energy, easing concerns about supply disruptions following the closure of its east-west pipeline due to drone attacks. However, the upward movement in silver is expected to be limited, as the Federal Reserve's (Fed) monetary policy decision indicated more interest rate hikes are anticipated this year.

The Fed raised interest rates by 25 basis points (bps) to 3.75%-4.00% to combat persistent inflation. Strategists at NBC Economics anticipate the Fed will maintain a "higher-for-longer" policy bias, with the peak of this tightening cycle potentially reaching 4.25%, according to the dot plot. The price of silver, currently trading at $64.38, is experiencing resistance at the 20-day exponential moving average ($64.91) and an RSI of 48.73, indicating waning momentum.

Technical analysis suggests that the silver price could rise towards $68 if it holds above the dynamic EMA, while a decline below $62.30 could lead to further drops towards $60 and potentially the July low of $54.77.