- Silver is at a critical juncture and could be on the verge of a significant bullish impulse.
- XAG/USD bulls looking for a sign on the lower time frames.
The price of silver is lower in Asia by 0.33% at the time of writing with the price dropping to a low of $27.63 from a high of $27.79.
The move, however, could be offering the bulls a discount with prospects of a daily continuation to the upside unfolding from a technical perspective, (more on that below).
Meanwhile, investors shrugged off concerns about higher inflation, with a weaker greenback boosting appetite in risky asset classes.
Overnight, XAG/USD was up some 0.8% by the close of play on Wall Street having travelled from a low of $27.46 to a high of $27.90 as per XAG/USD.
The bulls took advantage of a soft greenback that was bobbing along the bottom of the daily bearish trend on Monday.
Weakness in cryptocurrencies has also seen investor switch back into both silver and gold.
The gold to silver ratio was also down favouring the white metal, falling from a high of 68.3910 to a low of 67.5970, lower by 0.76%.
As a whole, the commodity complex is in better stead.
The CRB index was higher by just over 1% in the wake of renewed dollar weakness and stronger equities despite the holidays.
Silver technical analysis
As per prior analysis, ''...there is a compelling argument from a daily perspective as follows:
Should the price hold the current daily support, then an upwards continuation will be on the cards in line with the broader trend.''
Additional prior analysis
''... On the upside, bulls will seek to replenish the weekly $28.75 highs in what will be a fresh daily impulse to the upside from a 61.8% Fibonacci retracement of the prior daily bullish impulse.''
Live market analysis
The price action in this current area can be monitored from a vantage point on the lower time frames for bullish structure and bullish technical conditions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.