Silver Price Forecast: XAG/USD keeps downward bias below $55.00 as traders await FOMC

Silver (XAG/USD) continues to show a declining trend below $55.00 as traders wait for the Federal Open Market Committee (FOMC) meeting. The metal hovered around the $54.60 level on Wednesday, hindering the rebound from the $52.70-$52.65 area, its lowest point since November. Traders are now eagerly anticipating the outcome of the two-day FOMC meeting, scheduled to take place later during the US session.

The US Federal Reserve (Fed) is expected to keep interest rates unchanged, prompting traders to closely examine the policy statement and Fed Chair Kevin Warsh's remarks during the post-meeting press conference for any clues about future policy direction. The bearish consolidation phase, following the recent drop below the strong $55.00 psychological support, will be closely watched.

While the MACD turns positive above the zero line, hinting at a possible upside momentum, the RSI recovers from oversold territory but remains below the 50 mark, reinforcing a capped tone. A sustained increase beyond the $55.00 mark could lead to a short-covering move and push XAG/USD above $56.00, towards the $56.40 intermediate hurdle and the 100-period Simple Moving Average (SMA) at $57.55.

However, the price remains susceptible to further drops as long as it trades under the crucial $57.55 barrier.