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XAG/USD Price Forecast: Silver struggles below key moving averages amid hawkish Fed bets

Silver (XAG/USD) remains under pressure on Tuesday as a stronger US Dollar (USD) and rising US Treasury yields continue to weigh on the precious metal amid growing expectations that the Federal Reserve (Fed) may need to raise interest rates to tackle rising Oil-driven inflation pressures.

🔗 Source

💡 DMK Insight

Silver’s struggle against a stronger US Dollar and rising Treasury yields is a crucial signal for traders right now. With the Fed potentially raising interest rates to combat inflation, the precious metal is facing headwinds that could push prices lower. Traders should keep an eye on the correlation between XAG/USD and the USD index, as a sustained dollar strength could further depress silver prices. If inflation continues to rise, we might see a shift in sentiment, but for now, the technical levels around recent lows are critical. Watch for support around key levels, as breaking below could trigger further selling pressure. On the flip side, if the Fed signals a pause in rate hikes, silver could rebound sharply, making it essential to monitor Fed communications closely.

📮 Takeaway

Watch for silver to test support levels; a break could lead to further declines, while Fed signals on rate hikes will be key for potential reversals.

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