Silver Price Stalls Above $61 as Traders Show Caution

The silver price has cooled down after a strong rebound from the mid-$50s, and it's currently consolidating above its 50-day Simple Moving Average (SMA) at $61.42.

Despite fading expectations of Fed rate hikes, which would normally support non-yielding metals like silver, traders seem reluctant to push prices higher.

The July inflation readings have delayed the next rate increase rather than taking it off the table, keeping the US Dollar (USD) supported near its recent range and adding headwinds for silver.

Momentum indicators suggest that silver could enter a period of consolidation before its next directional move. The Relative Strength Index (RSI) has eased to 58, while the Moving Average Convergence Divergence (MACD) remains in positive territory but with fading green histogram bars.