Silver prices opened Monday’s Asian session with a sharp bearish gap, hovering around $66.10 per troy ounce after initial losses. The white metal remains under pressure as traders increasingly bet on Federal Reserve interest rate hikes, dampening appetite for non-yielding precious metals.
The XAG/USD pair showed modest recovery attempts after the gap-down opening but continues trading in negative territory. Higher interest rate expectations typically strengthen the US dollar and increase opportunity costs for holding silver, which generates no yield. This monetary policy outlook is weighing heavily on precious metals broadly.
Traders and brokers should monitor Fed commentary closely as any hawkish signals could accelerate silver’s downside momentum. The current price action suggests weakening technical support, with the bearish gap indicating potential continuation of selling pressure. Fintech platforms facilitating metals trading may see increased volatility in silver-related products.
FXnCO Insight
Maintain defensive positioning on silver exposure while Fed rate hike expectations remain elevated, as further dollar strength could push XAG/USD toward deeper support levels.
Source: FXStreet