- Silver retreats from $24,50 highs and tests support at $24.00 area.
- Precious metals dip with the USD picking up on inflation concerns.
- XAG/USD remains positive while above $23.40.
Silver futures are testing support at $24.00 after pulling back from six-week highs near $.24.50 weighed by a stronger US dollar with the risk rally coming to an end.
Metal prices pull back on inflation fears
Precious metals are trading lower on Friday, as higher inflation pressures have returned to the market, pushing US Treasury bond yields higher and ultimately buoying demand for the US dollar.
The US benchmark 10-year bond yield has edged up to fresh 4-month highs at 1.68% on Thursday, with the investors assuming that the persistently high inflation will force the Federal Reserve to accelerate its monetary policy normalization plan.
The US Dollar Index, which measures the value of the dollar against a basket of the most traded currencies, has edged up about 0.2% today, following a five-day decline from year-to-date highs at 94.54.
XAG/USD: remains positive while above $23.40
In a broader view, silver futures remain positive while above $23.40, where trendline support from late-September lows and the 50-period SMA meet. Below here, the next potential targets might be $23.00 (October 18 low), and 22.20/35 (October 6 and 12 lows).
On the upside, a bullish reaction past $24.45 (Intra-day high) would open the path towards early September highs at $24.80 and $25.20 (August 3, 4 lows).
XAG/USD 4-hour chart
Technical levels to watch
|Today last price||24.01|
|Today Daily Change||-0.28|
|Today Daily Change %||-1.15|
|Today daily open||24.29|
|Previous Daily High||24.42|
|Previous Daily Low||23.57|
|Previous Weekly High||23.59|
|Previous Weekly Low||22.35|
|Previous Monthly High||24.87|
|Previous Monthly Low||21.42|
|Daily Fibonacci 38.2%||24.1|
|Daily Fibonacci 61.8%||23.9|
|Daily Pivot Point S1||23.77|
|Daily Pivot Point S2||23.25|
|Daily Pivot Point S3||22.92|
|Daily Pivot Point R1||24.62|
|Daily Pivot Point R2||24.94|
|Daily Pivot Point R3||25.46|
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.