Silver Price Analysis: XAG/USD holds tight above $26.00 as coin demand battle bears


  • Silver keeps corrective pullback from $25.90 trapped in a $0.10 range off-late.
  • Premiums on American Eagle silver coins jump on Thursday, Apmex urges customers to expect delay in order processing.
  • Pre-NFP trading lull seems gaining momentum even as stimulus, vaccine hopes favor the risks.

Silver prices seem trapped between $26.30 and $26.40, currently around $26.33, amid the initial Asian session on Friday. The white metal refreshed weekly low the previous day as broad US dollar strength weighed on commodities, especially on the bullions. However, chatters over strong physical demand favor the silver bulls.

Bloomberg quotes Everett Millman from Gainesville Coins in Florida while saying, “Premiums on American Eagle silver coins have risen to more than $7 on Thursday from about $5 this past weekend.” Millman further said, “Gainesville Coins has a much higher volume of first-time orders and buyers than in the past.”

The upbeat physical demand could also be senses in the statement, “Dealers including Apmex were unable to process orders over the weekend because of unprecedented demand. Apmex’s website currently tells customers to expect a three- to five-day delay in processing times due to increased volume of orders.”

On the contrary, the US dollar’s strong upside momentum probes the funds from the bullion desk to the greenback. The US dollar index (DXY) jumped to the highest since December 01 during its five-day rise by the end of Thursday.

Behind the moves could be the latest risk-on mood, mainly concerning the US, based on President Joe Biden’s $1.9 trillion covid stimulus plan and recovery from the coronavirus (COVID-19) pandemic. Also favoring the mood could be upbeat vaccine developments.

Amid these plays, the Wall Street benchmarks rallied on Thursday, with S&P 500 and Nasdaq 100 closing at the record top. Though, S&P 500 Futures look for a clear direction near 3,865 by press time.

Moving on, the bullion traders may remain cautious ahead of the US employment report for January. Given the upbeat expectations from the key Nonfarm Payrolls (NFP), forecast 50K versus -140K prior, any disappointment will have the ability to join silver’s physical demand clues and recall the bulls.

Technical analysis

Silver’s latest bounce off 21-day SMA, at $25.85, keeps the buyer’s hopeful while bears trying to retest an ascending support line from November 30, at $25.08.

Additional important levels

Overview
Today last price 26.33
Today Daily Change -0.02
Today Daily Change % -0.08%
Today daily open 26.35
 
Trends
Daily SMA20 25.83
Daily SMA50 25.49
Daily SMA100 24.82
Daily SMA200 23.03
 
Levels
Previous Daily High 26.92
Previous Daily Low 25.9
Previous Weekly High 27.66
Previous Weekly Low 24.7
Previous Monthly High 27.92
Previous Monthly Low 24.19
Daily Fibonacci 38.2% 26.29
Daily Fibonacci 61.8% 26.53
Daily Pivot Point S1 25.86
Daily Pivot Point S2 25.37
Daily Pivot Point S3 24.84
Daily Pivot Point R1 26.88
Daily Pivot Point R2 27.42
Daily Pivot Point R3 27.91

 

 

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