Silver Price Holds Steady Amid US Dollar Weakness
The price of Silver (XAG/USD) is currently holding steady around $66.00, supported by the weakness in the US Dollar. According to HSBC experts, a combination of weaker US data, persistent inflation concerns, and policy credibility questions are weighing on the Dollar.
However, the analysts 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 fight inflation. This has reduced the risk that weak policy credibility would become a lasting drag on the Dollar and denting the debasement narrative.
Technically, XAG/USD is trading flat at $66.02, roughly halfway through its monthly range of $63.00 to $71.00. Momentum indicators are neutral, reflecting a lack of clear bias in the market.