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- Silver price falls further to near $63 as global inflation projections remain de-anchored.
- US President Trump confirms no talks with Iran are going on.
- Investors await the FOMC Minutes of the July policy meeting.
Silver price (XAG/USD) is down 0.5% to near $63.00 during the Asian trading session on Wednesday. The white metal extends its Tuesday’s decline amid fears of prolonged inflation concerns on the back of continued energy supply disruption.
As of writing, the WTI Oil price trades close to its two-week high at $85.11.
Higher oil prices de-anchor global inflation expectations, a scenario that prompts fears of interest rate hikes from global central banks. Such a case diminishes the appeal of non-yielding assets, like Silver.
The energy supply disruption seems unlikely to get fixed anytime soon as US President Donald Trump has confirmed that “there are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran”.
Meanwhile, investors await the Federal Open Market Committee (FOMC) minutes of the July policy meeting takes the centre stage, which will be published at 18:00 GMT. Investors should not anticipate major cues regarding the Federal Reserve’s (Fed) interest rate outlook, as Chairman Kevin Warsh remained stick to “no forward guidance” on policy rates.
Currently, the CME FedWatch tool shows that the Fed will leave interest rates unchanged in the September policy meeting.
Silver Technical Analysis
XAG/USD trades at $63.04, trading close to the 20-day Exponential Moving Average (EMA) at $62.41, suggesting a cautious near-term trend.
The Relative Strength Index (14) at 52.59 stays in neutral-to-positive territory, hinting that bullish momentum is still present but no longer overstretched.
On the downside, immediate support is located at the 20-day EMA at $62.41, where buyers are likely to defend the uptrend if corrective pressure extends, followed by the $60 round-level. Looking up, the August 10 high at around $66 act as key supply area.
