XAG/USD trades at $69.17 after a strong rally, struggling to break above $70 amid a firmer USD and mixed metals performance.
Silver (XAG/USD) remains steady near $69.17, consolidating after last week’s sharp rally but failing to breach the $70 mark. The metal’s upside is limited by a stronger US Dollar (USD) and outperformance from gold (XAU/USD), which rose nearly 1% on Monday.
The rally in precious metals follows the US Treasury’s buyback announcement and reduced expectations of an imminent Federal Reserve rate hike. However, uncertainty persists due to Middle East tensions and potential energy-driven inflation risks. Key US data, including Wednesday’s PCE Price Index, will influence Fed policy expectations ahead of the September meeting.
Technically, XAG/USD holds above its 100-day Moving Average at $68 and targets the upper Bollinger band at $70.86, with the 200-day MA at $72.13 as the next resistance level.