XAG/USD rises 2.4% but struggles at 21-day SMA as elevated Treasury yields and Fed policy expectations limit upside.
Silver (XAG/USD) climbed to $58.60, up 2.4% on Friday, supported by lower US Treasury yields and a pullback in oil prices. The US Dollar remained near recent highs, capping further gains for the metal.
The metal has traded between $55 and $63 since late June, stabilizing after a decline from May’s peak near $90.00. However, resistance at the 21-day SMA ($58.82) and higher SMAs ($65.44 and $71.21) maintain a bearish outlook.
Traders see an 80% chance of a Fed rate hike in September, reinforcing pressure on non-yielding assets like silver. Momentum indicators show mixed signals, with RSI near 45 and MACD slightly above zero.