XAG/USD drops sharply below the $18.50 mark on Fed’s aggressive tightening

NEW YORK (August 31) Silver prices edge lower, hitting six-week lows below the $18.50 mark, extending its losses for three consecutive days, amidst a sour market sentiment spurred by expectations of a hawkish Fed, according to Powell’s speech at Jackson Hole. Echoing the same remarks are ECB’s Governing Council members, adding to a worldwide hawkish choir where higher rates, and high inflation, could trigger a recession.

XAG/USD git a daily high, near $18.84, but broad US dollar strength, spurred by three Fed regional bank presidents, alongside renewed China’s Covid-19 lockdowns, weighed on the white metal. Therefore, tXAG/USD tumbled towards the day’s lows at $18.32 before settling around current prices. At the time of writing, XAG/USD is trading at $18.40, down almost 1.70%.

FXStreet