- XAG/USD is forming a bullish flag as it remains supported above the $26.00 level.
- The precious metal also continues to consolidate within a longer-term pennant.
Spot silver (XAG/USD) prices were choppy on Tuesday, closing the session with modest losses of around 0.1% or just over 3 cents after prices swing between the $26.00 level, which twice acted as support, and the $26.50 level.
Broader markets were choppy and mixed; US equities and the US dollar finished the session in the red while crude oil finished the session in the green. The lack of any clear direction was seen across precious metals markets and is perhaps unsurprising as markets wait to see what will happen with US fiscal stimulus and the Georgia run-off election on 5 January. Year-end portfolio rebalancing flows amid thin market conditions (many participants still away for Christmas and New Year’s celebrations) are another factor to consider that might distort the price action over the coming weeks.
XAG/USD forms a bullish flag
XAG/USD prices have been forming a bullish flag, with the pole being the spike higher seen during Monday’s Asia Pacific session that saw prices reach as high as $26.80. As noted earlier, XAG/USD is also consolidating within a longer-term pennant. If a break occurs to the upside of this short-term bullish flag, a move back to weekly highs around $26.80 and then onto last week’s highs loser to $27.50 is on the table.
XAG/USD four hour chart
-637448803843271446.png)
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.