XAG/USD recovers from seven-month lows near $56.00 amid a temporary USD retreat but remains on track for a 10% weekly loss.
Silver (XAG/USD) climbed to $57.91, recovering from session lows below $56.00 as the US Dollar (USD) paused its rally. The move follows a sharp 10% weekly decline driven by broad USD strength and expectations of further Federal Reserve rate hikes.
Recent US economic data, including a 4.1% year-on-year rise in the Personal Consumption Expenditures (PCE) Price Index, reinforced the Fed’s hawkish stance. Strong labor market figures and AI-driven investment flows have bolstered the USD, pressuring precious metals.
Technical indicators suggest the rebound may be short-lived. The Relative Strength Index (14) remains below 40, signaling weak momentum, while the MACD shows only a modest positive shift, hinting at stabilization rather than a reversal.