Key Moments
- Silver (XAG/USD) trades in a narrow band around $66.35 in early Monday dealings, maintaining a modest bullish tone above key technical support.
- Oil prices extend declines as prospects for US-Iran talks at the UN General Assembly improve, easing some inflation concerns and supporting non-yielding assets like Silver.
- Fed official Neel Kashkari states that US inflation remains “too high” and broad-based, keeping attention on the duration of the central bank’s tightening campaign.
Macro Backdrop: Middle East Developments and Oil Weakness
Silver prices are fluctuating in a tight range near $66.35 at the start of the week during the Asian session, with market participants closely tracking geopolitical headlines and interest rate expectations in the United States.
Oil prices are under pressure in Monday’s Asian trade, extending recent losses as optimism grows over potential diplomatic progress between the United States and Iran. According to TimesNow, US President Donald Trump indicated he would probably be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly in New York.
The ongoing pullback in crude has reduced some of the market’s concern about elevated inflation expectations. Softer oil prices can temper projections for persistently high interest rates, which in turn tends to be supportive for non-yielding assets such as Silver.
Fed Outlook: Inflation Still in Focus
Investors are also looking for clearer guidance on how long the Federal Reserve may keep tightening policy after the central bank began a new phase of its rate-hike campaign last week aimed at containing price pressures.
Over the weekend, Minneapolis Fed President Neel Kashkari remarked that “inflation is too high across all sectors of the US economy.” He emphasized that elevated inflation is not solely a function of higher oil prices, noting that strong economic growth is also contributing to persistent price pressures.
Technical Picture for XAG/USD
On the daily chart, XAG/USD is trading around $66.35 and is showing a mildly constructive bias, with spot prices holding above the 20-day Exponential Moving Average (EMA) at $65.22. The near-term technical stance remains positive while Silver stays above this moving average. The Relative Strength Index (RSI) is hovering close to 54, indicating steady upward momentum rather than an overstretched condition.
On the downside, the 20-day EMA near $65.22 is acting as immediate support. A daily close below that level would signal fading bullish momentum and could open the door to a deeper corrective move toward previous lows. On the upside, the August 28 high at $71.12 stands out as a major resistance area for buyers.
| Level / Indicator | Value | Implication |
|---|---|---|
| Spot price (XAG/USD) | $66.35 | Trades in a tight range with modest bullish bias |
| 20-day EMA | $65.22 | Immediate support; break below could signal deeper correction |
| RSI (daily) | Near 54 | Suggests firm but not overbought upside momentum |
| Key resistance | $71.12 (August 28 high) | Primary upside hurdle for further gains |
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