Silver Price Analysis: XAG/USD directs three-day uptrend towards $28.00 amid downbeat USD

Silver prints mild gains inside a small range.
Market sentiment dwindles amid indecision over Fed’s next moves, inflation fears.
US dollar extends Friday’s NFP-led weakness amid mixed concerns.
Covid, China become extra catalysts to follow for fresh impulse.

Anil Panchal FXStreet

Silver prices trade sidelined around $28.90, up 0.07% intraday, amid Tuesday’s Asian session. The white metal is consolidating the previous week’s losses during the three-day uptrend by the press time.

The US dollar weakness and hopes of economic recovery could be cited as the key reasons behind silver’s latest uptrend. The commodity prices gained traction to the north after the US Nonfarm Payrolls data, published Friday, helped the Fed to defend its easy-money policies.

In addition to the inverse correlation with the US dollar (USD), hopes of the economic recovery, backed by faster vaccinations, also help silver as it has a notable industrial usage. Also, chatters that the prices of the bullion are comparatively less high than the gold put a bid under the quote.

On the contrary, doubts over the unlock in the UK, Japan and India join the Western tussles with China, recently relating to covid origin and trade ties with Australia, probe silver buyers. Furthermore, a lack of major data/events and cautious mood ahead of the next Thursday’s US Consumer Price Index (CPI) and the ECB monetary policy meeting also weigh on the market sentiment and test the metal bulls.

It’s worth noting that the sluggish moves of the US Treasury yields and downbeat stock futures confuse the USD traders and help silver indirectly.

Moving on, sluggish sessions are likely to keep the metal prices under check ahead of Friday. However, news over the Fed’s next move and inflation, not to forget covid and China, could entertain market players meanwhile.

Technical analysis

A clear upside break of the one-week-old falling trend line favors silver buyers to aim for a $28.25-30 area’s revisit.

Additional important levels

Overview
Today last price	27.9
Today Daily Change	0.02
Today Daily Change %	0.07%
Today daily open	27.88

Trends
Daily SMA20	27.75
Daily SMA50	26.59
Daily SMA100	26.47
Daily SMA200	25.72

Levels
Previous Daily High	27.95
Previous Daily Low	27.48
Previous Weekly High	28.56
Previous Weekly Low	27.01
Previous Monthly High	28.75
Previous Monthly Low	25.81
Daily Fibonacci 38.2%	27.77
Daily Fibonacci 61.8%	27.66
Daily Pivot Point S1	27.59
Daily Pivot Point S2	27.3
Daily Pivot Point S3	27.12
Daily Pivot Point R1	28.06
Daily Pivot Point R2	28.24
Daily Pivot Point R3	28.53

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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