XAG/USD falls over 2% to $58.30 as traders price in a 71% chance of a September Fed rate hike amid geopolitical tensions.
Silver prices dropped more than 2% to $58.30 on Monday, pressured by rising expectations of a Federal Reserve interest rate hike in September. The CME FedWatch Tool shows a 71% probability of a rate increase, up from 57% a week earlier, as geopolitical risks fuel inflation concerns.
XAG/USD has traded between $55.50 and $62.50 since late June, remaining below key moving averages at $70.37 (200-day SMA) and $73.87 (100-day SMA). Technical indicators suggest weak momentum, with the RSI near 37 and the MACD barely positive.
Traders are now focused on Tuesday’s US Consumer Price Index data, which could further influence rate expectations and silver’s near-term direction.