Silver prices are treading water Monday following last Friday’s sharp 4.11 percent decline triggered by hawkish remarks from Federal Reserve Chair Kevin Warsh at Jackson Hole. The precious metal remains stuck below its 100-day simple moving average as traders struggle to find direction amid conflicting signals from currency and monetary policy fronts.
While a softer US Dollar would typically support silver prices, persistent expectations of a more aggressive Fed stance are keeping bullish momentum in check. The white metal’s consolidation reflects market uncertainty as investors digest Warsh’s comments, which reinforced the central bank’s commitment to maintaining restrictive policy. Brokers report thin trading volumes as participants await clearer catalysts.
The technical picture remains precarious with XAG/USD unable to reclaim key moving average support, suggesting further downside risk if hawkish Fed rhetoric continues. Currency traders and commodity desks are closely monitoring upcoming economic data for clues on the Fed’s next moves.
FXnCO Insight
Silver traders should watch the 100-day SMA level closely as a decisive break lower could trigger stop-loss cascades and accelerate bearish momentum.
Source: FXStreet