Silver bulls forming above key support, eye a 38.2% Fibo
- Silver prices consolidate near to the recent daily lows.
- XAG/USD bulls eye a 38.2% Fibo for the sessions ahead.
Silver was higher by some 0.25% by the closing bell on Wall Street on Thursday and XAG/USD ranged from a low of $25.82 to a high of $26.17.
In Asia, the price is in consolidation at $25.93 trading between a low of $25.92 and $25.99.
Meanwhile, signs of further economic growth also weighed on investor appetite for precious metals this week.
In data related to industrial metals, Durable Goods orders climbed in May at the fastest pace since January, bolstered by a sizeable gain in orders for commercial planes.
However, the prospects of the Federal Reserve tapering its asset purchase continues to weigh on the complex.
In this context, precious metals are not faring so well, even at times of US dollar weakness. The bar is low for further weakness in prices as the market is settling on a more balanced Fed rhetoric which will likely underpin the greenback.
DXY is currently correcting to a high of 91.83, and it could well explore the upper end of its 2021 89-93 range through Q3, which would weigh on precious metals.
US data will be important and taper talk will likely escalate to a crescendo into the Aug 28 Jackson Hole Fed conference.
XAG/USD technical analysis
It's looking quiet for the remaining sessions of the week as the price holds near the daily lows.
With that being said, this does not rule out a correction to the 38.2% Fibo at $26.58 so long as $25.70 continues to hold as daily support.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
