XAG/USD Plunges Below $61 as US Dollar Strengthens

The XAG/USD price has fallen below $61.00 due to the strength of the US Dollar, which has been driven by a hawkish Federal Reserve repricing.

John Velis, an analyst at BNY Markets, notes that market participants are pricing in confidence that policymakers will respond forcefully to rising inflation, pushing real yields up and weighing on precious metals.

The Relative Strength Index (14) is below 40, and the Moving Average Convergence Divergence (MACD) indicator is steady in negative territory, indicating a bearish view.

Bears are pushing against support around $60.87, with potential targets at $59.30 and $58.15, which is the 78.6% Fibonacci retracement of the July-August rally.