XAG/USD retreats from $66.60 highs after Fed officials signal further rate hikes and US-Iran talks stall, boosting the dollar.
Silver (XAG/USD) fell below $64.50 on Tuesday, retreating from Monday’s seven-week peak near $66.60. The decline follows hawkish remarks from Federal Reserve officials, including Cleveland Fed President Beth Hammack, who suggested current policy is not restrictive enough to curb inflation, raising expectations for additional rate hikes. Markets now await Wednesday’s US CPI data for further direction.
The metal’s pullback also reflects geopolitical tensions, as stalled US-Iran negotiations dim hopes for a swift resolution to disruptions in the Strait of Hormuz. Higher oil prices and a firmer US dollar added pressure, with XAG/USD testing support near $63.30. Technical indicators remain bullish but have eased, with the RSI near 60 and MACD above zero.
A break below $63.30 could shift focus toward lower levels, though bulls may defend the area as former resistance turns support.