Silver Price Forecast: XAG/USD holds losses near $66.00 due to Fed rate hike bets
Silver price (XAG/USD) inches higher after opening at a bearish gap, remaining in negative territory and trading around $66.10 per troy ounce during Asian hours on Monday.
Silver price (XAG/USD) remains below $66.00 near $66.10 per troy ounce on Monday due to expectations of a Federal Reserve rate increase. Stronger-than-expected US employment data fueled these hawkish sentiments, with August Nonfarm Payrolls rising by 162,000. The unemployment rate remained at 4.1%, and annual wage growth slowed to 3.1%.
FedWatch tool indicates a 58.3% probability of a 25-basis-point rate hike in September, while Federal Reserve Chair's message grew more hawkish, signaling tighter policy. The US Dollar strengthened as traders priced in tighter monetary policy, impacting the Silver price. Crude oil prices also rose, raising concerns of renewed inflationary pressures.
Silver is a precious metal that often acts as a hedge during high-inflation periods, but its price is influenced by factors such as interest rates, USD movements, and industrial demand.
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