Silver Stabilizes Near $68.50 as Fed Chair Warsh’s Jackson Hole Speech Looms

During Thursday’s European trading session, silver (XAG/USD) climbed 0.35% to approximately $68.40, fluctuating within a narrow weekly range between $67.35 and $70. The precious metal is exhibiting limited direction as investors await Federal Reserve Chairman Kevin Warsh’s speech at the Jackson Hole Symposium on Friday.

Market participants will closely monitor Warsh’s commentary on inflation dynamics and the outlook for United States interest rates.

In the recent July policy meeting, Fed Chair Warsh provided no forward guidance but underscored the central bank’s commitment to reducing inflation to the 2% target.

Financial markets anticipate that the Fed’s anti-inflation stance could bolster the US Dollar (USD). A stronger dollar may dampen the appeal of non-yielding assets like silver, rendering it a less attractive risk-reward proposition for investors.

OCBC strategists noted that the USD could “find support if Warsh and other Fed officials counteract debasement concerns and reaffirm their pledge to restore inflation to the Fed’s 2% aim,” highlighting the conference as a pivotal moment for clarifying policy credibility.

Silver Technical Analysis

On the daily chart, XAG/USD is trading at $68.40, preserving a bullish near-term bias as the price remains above the 20-day Exponential Moving Average (EMA) at $65.34. The metal has extended its gains from this dynamic support, with the Relative Strength Index (RSI) at 62 indicating robust upward momentum approaching overbought levels yet still favoring buyers.

Downside risk is initially contained at the 20-day EMA near $65.34, where a pullback could attract additional bids to support the broader uptrend. To the upside, absent immediate structural obstacles, momentum is the key determinant; the elevated RSI suggests that while the bullish trend endures, further advances may moderate as market conditions stretch.

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