- 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.
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 holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.