Silver Price Forecast: XAG/USD continues lackluster performance around $22.50 ahead of FOMC minutes

• Silver price consolidates around $22.60 as investors await FOMC minutes for further guidance.
• Investors hope that the Fed would keep interest rates higher for a longer period.
• Silver price gathers strength to deliver a breakout of the Falling Wedge pattern.

Silver price (XAG/USD) remains sideways around $22.50 in the early New York session ahead of the release of the Federal Open Market Committee (FOMC) minutes. The white metal consolidates as FOMC minutes will provide more clarity about the interest rate guidance.

S&P500 adds some gains after opening as investors digest Fitch downgrade warning for US banks. The 10-year US Treasury yields rebounded above 4.20% as investors hope that inflation will remain sticky due to fading recession fears.

The US Dollar Index (DXY) seems misguided amid mixed cues about the interest rate outlook. Market participants hope that the Federal Reserve (Fed) would keep interest rates higher for a longer period. Discussions about rate cuts are scheduled any time for next year.

Meanwhile, the Fed reported that monthly Industrial Production rose sharply by 1.0% while investors forecasted expansion by 0.3%. In June, the economic data contracted by 0.8%. Monthly House Starts rose by 3.6% in July.

Silver technical analysis

Silver price gathers strength to deliver a breakout of the Falling Wedge chart pattern, which indicates fading downside momentum, formed on a two-hour scale. A breakout of the aforementioned chart pattern will result in a bullish reversal. The 50-period Exponential Moving Average (EMA) at $22.65 continues to act as a barricade for the Silver bulls.

The Relative Strength Index (RSI) (14) oscillates in the 40.00-60.00 range, portraying a lackluster action.

Silver two-hour chart