- XAG/USD continues to trade with a downside bias and hit more than two-month lows in the $23.20s on Wednesday.
- The buck continues to advance, weighing on the pair, amid risk-off flows, geopolitical jitters and Fed tightening bets.
Continued buck buoyancy against the backdrop of still very jittery global market risk appetite (US stocks have pared earlier gains to trade flat again and remain near weekly lows) has kept spot silver (XAG/USD) prices trading with a negative bias. XAG/USD continues to struggle on rebounds back towards its 200-Day Moving Average at $23.83 per troy ounce, with the precious metal printing a fresh more than two-month lows on Wednesday in the $23.20s.
Upcoming US GDP and Core PCE inflation data on Thursday and Friday will likely underpin expectations for the Fed to hike interest rates by 50 bps next week and at its coming meetings, which should, alongside concerning geopolitical developments in Europe, keep USD well supported in the coming days. If stocks resume their recent drop, which seems more likely than not at this stage, falling US (and global) yields on safe-haven bond demand might slow the pace of any XAG/USD decline, but bears will nonetheless be eyeing a test of $23.00.
In the slightly longer-term, bears will target test of annual lows in the $22.00 area, with recent failures to get back above the 200DMA and resistance at $24.00 a bearish sign for XAG/USD, so technicians say. But technicians have also warned that the recent build-up of USD long positions is becoming overstretched. A period of likely means a break below $23.00 isn’t on the cards before the end of this month.
|Today last price||23.41|
|Today Daily Change||-0.10|
|Today Daily Change %||-0.43|
|Today daily open||23.51|
|Previous Daily High||23.93|
|Previous Daily Low||23.4|
|Previous Weekly High||26.22|
|Previous Weekly Low||24.05|
|Previous Monthly High||26.95|
|Previous Monthly Low||23.97|
|Daily Fibonacci 38.2%||23.6|
|Daily Fibonacci 61.8%||23.73|
|Daily Pivot Point S1||23.3|
|Daily Pivot Point S2||23.09|
|Daily Pivot Point S3||22.77|
|Daily Pivot Point R1||23.82|
|Daily Pivot Point R2||24.14|
|Daily Pivot Point R3||24.35|
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.