Silver Price Forecast: XAG/USD falls like house of cards on Fed’s hawkish narrative
Silver price (XAG/USD) is down 4.3% to near $61.50 during the European trading session on Monday. The white metal nosedives as elevated United States (US) Treasury Yields have diminished its appeal.
Silver price (XAG/USD) plummeted like a house of cards on Monday, falling to $61.50 amid hawkish Federal Reserve (Fed) predictions. The surge in US Treasury Yields, reaching a 19-year high of 5.23%, contributed to the decline. Analysts at Deutsche Bank attribute the yield rise to robust economic data, including low US weekly initial jobless claims (197k in the week ending September 19) and a declining 4-week moving average.
This has fueled expectations of further Fed rate hikes, leaving XAG/USD with a bearish outlook as it trades below the 20-day EMA at $64.74 and the RSI of 40.61 remains below neutral 50. Resistance lies at $62.26 and $64.74, while support is at $60.00. Silver's value is influenced by factors such as inflation, interest rates, economic data, and geopolitical tensions, making it an appealing hedge during high-inflation periods.
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