Silver Price Consolidates Below 100-Day SMA Amidst Hawkish Expectations
The Silver price has consolidated below its 100-day Simple Moving Average (SMA) after last week's decline, leaving its near-term bias bearish. The XAG/USD pair is trading at around $66.25, down 0.23% on the day, as it struggles to find direction amidst a weaker US Dollar and lingering hawkish Federal Reserve expectations.
On Friday, Silver tumbled 4.11% in the wake of Fed Chair Kevin Warsh's comments at Jackson Hole, which revived bets on a September rate hike. The CME FedWatch Tool now shows a 65% probability of a 25-basis-point increase at next month's meeting.
From a technical perspective, Silver has pushed below its 100-day SMA but remains above the 50-day SMA and several Fibonacci support levels. The Relative Strength Index (RSI) is in neutral territory, suggesting bullish momentum is fading, while the Moving Average Convergence Divergence (MACD) indicator hints at a consolidative phase before the next directional move.