Silver Price Plummets Below $65 Amid Strong Demand Fears

The price of Silver (XAG/USD) has fallen below $65 on Tuesday, down 1.75% to near $64.85 during the European trading session.

This decline comes as Federal Reserve officials warn that strong demand is fuelling upside inflation risks alongside higher oil prices.

According to Austan Goolsbee, Chicago Federal Reserve Bank President, 'Strong demand may be adding to inflation along with energy, tariff, other supply shocks.'

The CME FedWatch tool shows an almost 90% chance that the Fed will deliver at least one interest rate hike this year.

Silver Technical Analysis indicates a bearish near-term tone as it remains capped by the 20-day Moving Average Exponential (EMA) at $65.18, with initial resistance located at the same level on the topside and former resistance trend line turning into support around $64.26 on the downside.