Silver Price Stabilizes Near $66.00 as US Dollar Weakness Supports

The price of Silver (XAG/USD) is currently trading at around $66.00, supported by the weakness of the US Dollar. According to HSBC experts, a combination of weaker US data, inflation concerns, policy credibility questions, and political risks are weighing on the Dollar.

However, the experts note that Fed Chairman Warsh's recent speech at Jackson Hole helped ease one key part of the story by restoring confidence in the Fed's commitment to fighting inflation. This has reduced the risk that weak policy credibility would become a lasting drag on the Dollar.

The precious metal is trading within its monthly range, with technical indicators showing neutral momentum. The Relative Strength Index (14) is around 52, and the Moving Average Convergence Divergence (MACD) is slipping modestly below zero.