Fed rhetoric puts silver under pressure amid shifting demand for non-yielding assets

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Silver under pressure on Fed warnings, demand outlook dims

Highlights

Federal Reserve Governor Waller warned of potential aggressive monetary tightening, triggering a more than 2% drop in silver prices.
Expectations of tighter US policy have strengthened the Dollar and yields, reducing investor demand for non-yielding assets like silver.
Silver trades below key short-term moving averages and faces technical resistance, with further declines likely unless Fed rhetoric softens.

Fed tightening risk weighs on silver demand

According to FXStreet, on November 10, 2026, Federal Reserve Governor Christopher Waller warned of the possibility of more aggressive monetary tightening, after which silver saw a drop of over 2%.

The prospect of tighter US monetary policy has historically boosted the US Dollar and pushed yields higher, reducing investment appeal for non-yielding assets such as silver. This policy-driven liquidity shift compromises demand for XAG as investors redirect assets toward interest-paying instruments.

While broader market sentiment remains cautious ahead of the next US inflation release, monetary policy remains the central risk factor for XAG. No significant offsetting supportive news has been reported within the same period.

Policy-driven weakness reflected in XAG 4H trend

Recent pressure on XAG is amplified by price trading below both the 20-period and 50-period simple moving averages on the 4-hour chart, indicating continued short-term weakness. The Kijun resistance at $52.56 further signals technical hurdles for any rebound attempts.

Mixed technical signals persist, with the MACD maintaining a 'Strong Buy' bias and the ADX registering a 'Sell' direction, suggesting trend strength but no clear reversal. Price remains well under the longer-term 200-day SMA at $66.06, reinforcing the broader bearish structure.

Monetary policy and US data set direction for XAG

XAG remains sensitive to further hawkish rhetoric or data-driven shifts in US central bank policy. Immediate upside would need confirmation above the H4 50-period SMA resistance at $52.4. Sustained moves below current levels may keep pressure intact unless Fed messaging softens or inflation data surprises markets.

Anton Kharitonov, expert at Traders Union, sees silver under continued pressure as Fed hawkishness props up the US Dollar and Treasury yields. Technical charts remain weak, with price action below key moving averages and resistance holding overhead. He cautions that no major bullish catalysts have emerged, and US monetary policy is still the primary risk context for XAG. "Until silver can reclaim $52.4 on a closing basis, I remain defensive and watch for further downside risk."

Previously it was reported that domestic silver prices in Pakistan remained stable even as gold rates declined in response to international market movements. The current article adds a new dimension, highlighting that global silver prices are now under pressure from the prospect of further Federal Reserve tightening, making US monetary policy the primary risk to watch for XAG's next move.

Source of Data: XAG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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