On Wednesday, spot silver prices surged more than 2% following dovish comments from Federal Reserve Chairman Jerome Powell and heightened tensions in the Middle East. The price of spot silver climbed past the key resistance level of the 100-day moving average (DMA) to close at $28.98 per ounce, marking a 2.15% increase.
The Federal Reserve concluded its two-day monetary policy meeting with the Federal Open Market Committee (FOMC) deciding unanimously to keep the federal funds rate steady between 5.25% and 5.5%. Powell’s remarks during the press conference indicated that the Fed sees progress toward its 2% inflation target, suggesting potential interest rate cuts as early as September if inflation continues to cool.
The U.S. Dollar Index reflected Powell’s dovish stance, closing down 0.4% at 104.06, contributing to the rise in silver prices.
In the Middle East, tensions escalated as reports emerged that Iran’s Supreme Leader Ayatollah Ali Khamenei ordered a direct strike against Israel. This directive came after the assassination of Hamas leader Ismail Haniya in Tehran, which Iran attributed to Israel. Iranian officials, including members of the Revolutionary Guards, confirmed that Khamenei issued the order during an emergency meeting of Iran’s Supreme National Security Council (SNSC).
According to FXStreet analyst Christian Borjon Valencia, the technical outlook for silver remains bullish. The Relative Strength Index (RSI) indicates increasing buyer momentum, targeting prices of $29.44 per ounce and potentially $30.00 per ounce. If silver remains above $29.00, further resistance levels are anticipated at $29.44, with the 50-day moving average set at $29.89.
Conversely, if silver prices fall below the 100-day DMA of $28.58, support levels may be found at the July 29 low of $27.31, followed by $27.00. As of 08:21 GMT, spot silver was trading at $29.04 per ounce. 
