Silver prices face downward pressure at $51.40 as hawkish Fed sentiment and a 91% probability of a December rate hike bolster the US Dollar.
Hotter-than-expected US CPI data has driven markets to price a nearly 91% probability of a December Fed rate hike, with Governor Waller supporting a quarter- or even half-point increase. A stronger dollar and tightening expectations push the dollar-denominated metal lower, already down to around $51.40. With price below the 9- and 50-period EMAs and the RSI at 38.21, the near-term bias stays bearish unless $51.35 holds.
Hotter-than-expected CPI inflation data has fueled hawkish sentiment around the Federal Reserve, and markets price a nearly 91% probability of a December rate hike after Governor Waller said he would support a quarter- or even half-point increase. Rising rate expectations support the dollar, which is already pressuring silver lower. This week's Jobless Claims, existing home sales and producer inflation data could confirm or challenge that path.
Silver (XAG/USD) trades lower at $51.40 as a strengthening US Dollar weighs on the metal. Markets are pricing in a nearly 91% probability of a December Federal Reserve rate hike following hawkish comments from Governor Christopher Waller and hotter-than-expected US CPI inflation data.
A stronger US dollar, driven by hotter-than-expected CPI data and nearly 91% market-implied odds of a December Fed rate hike, is weighing on the dollar-denominated metal, trading around $51.40 per troy ounce.
Resistance sits at the 9-period EMA near $51.99 and the 50-period EMA near $57.29; on the downside, a break below $51.35 leaves the metal vulnerable to further declines.
Hotter-than-expected US CPI inflation data has boosted expectations of a Fed rate hike in December, with markets assigning roughly a 91% probability and Fed Governor Waller signaling support for a quarter- or even half-point move.