Silver tests $65: Why are buyers struggling to extend the rally?
Silver (XAG/USD) struggles to extend its gains on Monday following last week’s strong breakout as traders assess the Federal Reserve’s (Fed) interest rate outlook amid risks on both sides of its dual mandate.
Silver (XAG/USD) has been struggling to maintain its recent gains, hovering around $64 on Monday. The $65 psychological mark has proven to be a firm ceiling for the precious metal. After the US Nonfarm Payrolls (NFP) data showed weaker-than-expected figures, traders have scaled back their expectations for a September Fed rate hike.
The probability of a rate hike now stands at less than 50%, according to the CME FedWatch Tool. Meanwhile, concerns over the reopening of the Strait of Hormuz continue to fuel energy-driven inflation risks. Traders are now eagerly awaiting the US Consumer Price Index (CPI) data on Wednesday, which could determine whether Silver breaks above $65 or loses momentum.
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