The Silver price (XAG/USD) trades with mild gains around $30.40 during the Asian trading hours on Wednesday. The uncertainty surrounding new tariff policies under US President Donald Trump's administration could provide some support to the precious metal. Later on Wednesday, all eyes will be on the Federal Reserve (Fed) meeting.

The Fed interest rate decision on Wednesday will play a pivotal role in shaping the direction of Silver price.

The US central bank is expected to hold its benchmark rate steady at its January meeting at its current range of 4.25%–4.50%. In December Fed Chair Jerome Powell signaled that the Fed would deliver fewer rate cuts in 2025 than it had earlier projected

However, investors will closely watch the Press Conference for more cues about the US rate outlook. If the Fed takes a wait-and-see approach to the Trump administration's policies, this could lift the Greenback and weigh on the USD-denominated commodity price in the near term.

Source: FXStreet