XAG/USD Collapses Under Fed's Hawkish Narrative

The XAG/USD price has plummeted due to the Federal Reserve's hawkish narrative, falling below $61.50 in the daily chart.

Analysts at Deutsche Bank point out that strong economic data, particularly the US weekly initial jobless claims, which came in at 197k, have contributed to the Fed's decision to maintain interest rate hikes.

The CME FedWatch tool shows a nearly 68% chance of another rate hike in the October policy meeting, with the US Nonfarm Payrolls data for September expected to show a lower-than-expected 100K fresh jobs.

The bearish near-term bias is reflected in XAG/USD's hold below the 20-day exponential moving average at $64.74 and the Relative Strength Index staying below the neutral 50 line, indicating lingering downside pressure.