Silver (XAG/USD) is trading flat at the $66.00 area on Tuesday, maintaining minor weekly gains after rebounding from the mid-$64.00s last week [1]. The precious metal is supported by a soft US Dollar, as US markets reopen following a long weekend and traders await Friday’s US Consumer Price Index (CPI) release, which is expected to influence the outcome of next week’s Federal Reserve (Fed) meeting [1]. HSBC analysts highlight that weaker US data, persistent inflation concerns, policy credibility questions, and political risks are weighing on the Dollar, fueling discussions about its debasement [1]. However, Fed Chairman Warsh’s recent remarks at Jackson Hole have restored some confidence in the Fed’s commitment to fighting inflation, reducing the risk that weak policy credibility will continue to drag on the Dollar, at least for now [1]. Despite this, HSBC cautions that broader structural concerns, particularly regarding US fiscal sustainability, could resurface and negatively impact the Dollar again [1].
Technically, XAG/USD is trading at $66.02, positioned halfway through its monthly range of $63.00 to $71.00, and just below the key 200-day Simple Moving Average at $73.00 [1]. Momentum indicators are neutral, with the Relative Strength Index (14) at 52 and the MACD slightly below zero, indicating a lack of clear directional bias [1]. Resistance levels are identified at $67.40, $71.12-$71.56, and $72.95, while support is seen at $64.75 and $63.00. A break below $63.00 would confirm a bearish Head & Shoulders pattern, increasing pressure towards the August 6 low at $60.87 [1].
Market participants are closely watching upcoming US economic data and Fed policy signals, as these factors are likely to influence both the Dollar and silver prices in the near term [1].
CONCLUSION
Silver remains stable above $66, buoyed by US Dollar weakness and cautious optimism following Fed Chairman Warsh’s remarks. Technical indicators suggest a neutral bias, with key resistance and support levels in focus. The market is awaiting US CPI data and Fed decisions, which could drive further price action.