Silver Price Dips Below $66.00 Amid Bearish Sentiment Ahead of Fed Rate Decision
Silver prices have taken a dip below $66.00 as investors become increasingly bearish on the metal's prospects.
The XAG/USD pair hit session lows in the mid-$65.00s after a reversal from the $68.00 area, with analysts pointing to the US Federal Reserve's upcoming interest rate decision as a key driver of market sentiment.
Last Friday's strong US Nonfarm Payrolls (NFP) figures saw investors ramp up bets on a Fed rate hike at the September 15-16 meeting to a 58% chance, from around 50% before the release.
The August CPI release is now seen as crucial in determining the Fed's decision, with analysts at ING predicting 'month-on-month readings at 0.4% and 0.2% for headline and core (inflation) should be enough to sway the Fed towards a 25bp rate hike on 16 September.'
The technical indicators are also painting a bearish picture, with the Relative Strength Index (RSI) hovering near a neutral 52 zone and the Moving Average Convergence Divergence (MACD) staying in negative territory.