Silver Price Forecast: XAG/USD dips below $66.00 and hints at a bearish “H&S”

Silver (XAG/USD) slipped below $66.00 on Monday, indicating a potential bearish trend. The precious metal traded at $65.79, which is well below the 200-day simple moving average (SMA). This move comes after an upward revision in US Nonfarm Payrolls (NFP) data last Friday, which increased the probability of a Federal Reserve rate hike at the September 15-16 meeting to 58%.

Analysts at ING suggest that Friday's 200-day SMA cross and the August Consumer Price Index (CPI) release on Friday will be crucial for determining the Fed's next move. The 14-period Relative Strength Index (RSI) is nearing a neutral 52 zone, while the Moving Average Convergence Divergence (MACD) remains in negative territory, signaling continued bearish pressure.

Should the price break below the September 2 low of $63.30, it could confirm the bearish Head & Shoulders (H&S) pattern and push the price towards the August 6 low of $61.00. On the upside, resistance is near $67.50, with $71.60 and the 200-day SMA at $72.90 posing further challenges. Factors such as geopolitical risks, interest rates, and the US Dollar's value can impact Silver's price, which is often used as a hedge against inflation or economic uncertainty.