Silver Price Forecast: Bulls struggle below the 100-day SMA
Silver (XAG/USD) pulls back on Tuesday after failing to hold its earlier advance. At the time of writing, the metal trades around $66 after reaching an intraday high near $67.19.
Silver prices face headwinds as the metal struggles to stay above its 100-day simple moving average. On Tuesday, silver fell to around $66 after peaking near $67.19. Worries over potential inflation and the Federal Reserve's hawkish stance, as suggested by a 60% chance of a rate hike next week, have dampened silver's appeal. The US dollar remains under pressure, providing some relief to silver prices, which are now hovering near key support levels.
The 100-day SMA at $67.28 and the 23.6% Fibonacci retracement at $67.17 act as immediate resistance, while the 38.2% retracement at $64.80 and the 50-day SMA at $62 offer cushioning should the metal continue its downward trend. Traders will be watching the upcoming US Producer Price Index and Consumer Price Index for clues on the Fed's future monetary policy decisions.
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