Silver Holds Above $66 as Rate Expectations Limit Upside - VT Markets

AI desk brief

Silver is holding just above the $66 area, with XAGUSD last around $66.09 as traders balance inflation/geopolitical hedging demand against a firmer rate backdrop. Immediate levels to watch are $66.30 for upside confirmation and $66.00 as first support; the recent swing low sits near $65.95, while the broader recovery cap is $66.80–$67.00.

The note says stronger US jobs data has lifted expectations for further Fed tightening, and similar policy pressure from the ECB and BoJ is weighing on non-yielding precious metals. Offsetting that, elevated oil prices and renewed Middle East tensions are still supporting inflation-hedge demand, with central-bank buying and broader debasement concerns also cited as underpins for the complex.

Technically, silver is trying to stabilise after the recent pullback from $67.00–$67.18. RSI(14) has recovered to around 48 but remains below 50, so momentum is still neutral-to-soft unless price can clear $66.30 and reclaim the 20-period EMA decisively. Near term, macro catalysts remain US inflation data, Fed rate expectations, USD moves and any escalation in Middle East tensions.