Silver Daily Outlook Update Silver (XAG/USD) holds onto losses from yesterday morning, around $60.70. The white metal is falling as investors expect the Federal Reserve (Fed) to raise interest rates further this year. A Fed rate hike means higher yields for interest-earning assets, which reduces demand for non-interest-earning assets like silver. Based on TD Securities, "the chances of an October hike have become much higher," with economic experts contending that "the Fed is unlikely to regain its confidence in the progress toward inflation targets before the October meeting." Since "all participants expect further tightening," they feel that "there is no point in waiting till December for a hike." Hence, TD Securities are "expecting two more hikes from the Fed (October and January)," as "inflation is running ahead of target and risk is building up." However, they also believe that "the labour market is now stabilised, with some improvement and activity numbers have been strong." In their opinion, "the economy is capable of dealing with further restriction, and the Fed is delivering it now, with the future inflation dynamics to determine the pace and extent of hikes." According to CME FedWatch, there is a 70% probability that the Fed will raise interest rates at its October meeting. Investors are also looking ahead to the release of United States (US) JOLTS Job Openings data, due at 14:00 GMT. The JOLTS Job Openings report is forecast to show that employers advertised 7.23 million new job vacancies, just slightly less than 7.271 million in July. From a geopolitical perspective, diplomatic relations between the US and Iran have slightly improved, as both countries are now negotiating their proposals through mediators. According to Iran's Foreign Minister Abbas Araghchi, "Iran has been negotiating proposals with Qatari mediators to forward to the US." He further added, "The US reaction will be forwarded to Iran via Qatari mediators." XAG/USD is trading at $60.83 on the daily chart and continues moving with a bearish short-term trend, as spot is well below the 20-day EMA level of $64.30. Price remains restrained by this resistance dynamic line, meaning sellers are in control after the recent retreat. At the same time, the RSI at 38.6 is slightly above the oversold region, signalling continued bearish pressure rather than exhaustion. As for topside resistance, the first level is near $62.50, followed by the 20-day EMA at $64.30; a breakout above it would be required to shift the trend into a more constructive one. On the downside, the $60 level acts as the first buffer; below it, the asset may fall to close near the August 3 low at $56.57.
