- Silver regains positive traction on Wednesday and reverses a major part of the overnight losses.
- The technical set-up supports prospects for a breakout through a descending trend-line resistance.
- Sustained weakness below the $18.80-$18.75 region is needed to negate the constructive outlook.
Silver attracts fresh buying on Wednesday and continues gaining traction through the first half of the European session. The white metal reverses the previous day's modest losses and is currently trading near the daily peak, around mid-$19.00s.
Looking at the broader picture, the XAG/USD has been oscillating in a familiar range over the past one-and-half week or so and remains below a downward sloping trend-line extending from the May swing high. The said barrier, currently around the $19.75 region, should act as a key pivotal point and help determine the next leg of a directional move for the commodity.
Meanwhile, positive technical indicators on the daily chart support prospects for an eventual breakout through the aforementioned hurdle. The XAG/USD might then surpass the $20.00 psychological mark and test the 100-day SMA, around the $20.25 region. The momentum could further get extended towards the $20.50 intermediate resistance en route to the $21.00 mark.
On the flip side, any meaningful pullback might continue to find decent support near the $19.00 mark ahead of the $18.80-$18.75 region. A convincing break below will shift the near-term bias back in favour of bearish traders and make the XAG/USD vulnerable to accelerating the fall to the $18.45-$18.40 support. Spot prices could eventually drop to the $18.00 round figure.
Silver daily chart
-637993520485559826.png)
Key levels to watch
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.
Recommended content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US FBI has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.