Overview
Certainly, here’s a summary: The XAG/USD (Silver/US Dollar) is in a corrective phase, reaching $23.00 and settling at $22.60. This correction is influenced by expectations of Fed rate hikes, leading to higher US bond yields. The July FOMC minutes suggest rate hikes in September and November due to inflation concerns. This has reduced the appeal of non-yielding metals like silver. The US 10-year bond rate is at its highest since October 2022, with short-term yields also up. The market anticipates a Fed pause in September, with a 40% chance of a 25 basis point hike in November. Technically, the XAG/USD chart shows a neutral-to-bearish outlook with RSI and MACD indicators, and the pair is trading below key SMAs, indicating bearish control.

XAG/USD corrects oversold conditions, reaching $23.00 and ending at $22.60. Fed hawkish wagers drive bond yields, limiting Silver’s potential.

Markets predict Federal Reserve interest rate hikes in September and November after FOMC minutes from July revealed potential raises and concerns about inflation upside risks.

The US 10-year bond rate reached its highest level since October 2022 at 4.28%, while the 2- and 5-year rates reached new monthly highs at 4.98% and 4.46%, respectively. Investors are betting on a 40% chance of a 25 basis point hike in November, excluding the possibility of a Fed break in September.

The daily chart shows a neutral to bearish outlook for XAG/USD, with potential for more volatility. The pair is below the midline and SMAs, indicating bears control over the larger picture.

Levels of support: 22.30 and 22.00.

Levels of resistance: 23.00 and 23.20.


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