Silver Price Forecasts: XAG/USD dips below $66.00 and hints at a bearish “H&S” - tmgm.com

AI desk brief

Silver is under near-term pressure, with XAG/USD sliding to session lows at $65.46 after Friday’s reversal from the $68.00 area. The move comes as stronger-than-expected US August NFP data (162K vs 57K expected) has lifted expectations for a Fed rate hike at the September 15-16 meeting, currently priced at 58% on CME FedWatch, a backdrop that is weighing on precious metals generally.

Technically, the pair is now trading below its 200-day SMA and the article flags a developing bearish head-and-shoulders pattern. The neckline is identified around $63.30, with interim support at $64.75; a break of $63.30 would confirm the setup and expose the August 6 low near $61.00. On the topside, initial resistance sits around $67.50, then $68.00, with further supply at $71.60 and the 200-day SMA near $72.90.

This week’s key catalyst is Friday’s US CPI print, which ING says could show 0.4% headline and 0.2% core m/m—enough, in their view, to keep a 25bp September hike in play. Near term, silver remains sensitive to rates expectations and the dollar; a hot CPI would likely extend downside momentum, while a softer print could slow or reverse the move.