Silver Price Hinges on Fed's Warsh Speech

Silver prices have been stagnant near $68.50 as markets await the highly anticipated speech by Federal Reserve Governor Christopher Warsh. This pause in price movement is due to investors being cautious ahead of the speech, which will provide insight into the Fed's stance on interest rates and inflation.

A hawkish tone from Warsh could strengthen the US dollar and put downward pressure on silver prices, while a more dovish outlook might support the metal. The current economic data has been mixed, with inflation showing signs of cooling but still above the Fed's 2% target.

The CME FedWatch tool indicates a 62% probability of a 25-basis-point cut at the next meeting, which could shift based on Warsh's comments. From a technical perspective, silver remains in a consolidation phase with support seen at $67.80 and resistance at $69.20.

The US Dollar Index has been hovering near 104.50, and Treasury yields remain elevated, weighing on silver prices. However, ongoing geopolitical tensions and central bank buying have provided a floor under the metal.