Silver Holds $66.35 as Oil Falls and Fed Warns on Inflation
Silver consolidates near $66.35 while falling oil prices ease inflation fears. Fed officials maintain that price pressures remain broad-based.
Key points
- Silver trades at $66.35, holding above the 20-day EMA at $65.22.
- Oil prices fall as US-Iran diplomatic hopes rise, easing inflation concerns.
- Fed’s Kashkari warns inflation is too high and broad-based across sectors.
Silver trades at $66.35 during the Asian session on Monday. The metal holds steady while investors watch Middle East diplomacy and US interest rate signals.
Oil prices decline as hopes rise for US-Iran talks at the UN. Lower energy costs reduce inflation fears, which supports non-yielding assets like silver.
Diplomatic Hopes Lower Energy Costs
President Trump expressed openness to meeting Iran’s leader this week. This potential dialogue lowers oil prices, easing pressure on the broader economy.
Reduced oil costs help dampen inflation expectations. This environment favors silver because it pays no yield and benefits from lower rates.
Fed Officials Stress Persistent Inflation
Minneapolis Fed President Neel Kashkari stated that inflation remains too high. He noted that price pressures are broad-based and not just driven by oil.
Resilient economic growth continues to boost these price pressures. Investors now focus on how long the Federal Reserve will maintain its tightening cycle.
Technical Levels Define Near-Term Path
The price stays above the 20-day EMA at $65.22. This position indicates a modest bullish bias for the short-term trend.
A daily close below $65.22 would signal fading bullish pressure. The major resistance level remains the August 28 high at $71.12.
