Silver Price Analysis: XAG/USD juggles around $23.50 as Fed sees further policy tightening


Share:
  • Silver price trades sideways near $23.50 after a hawkish Fed guidance.
  • The US Dollar Index struggles to extend recovery despite a risk-off market mood.
  • Silver price aims to shift auction above the 50% Fibonacci retracement at $23.66.

Silver price (XAG/USD) corrects gradually to near $23.50 after hawkish commentary from Federal Reserve (Fed) policymakers. The white metal failed to extend a rally above $23.80 after Boston Fed President Susan Collins cited on Friday that a further rate hike is certainly not off the table.

Fed Collins also commented that inflation can fall with only a modest rise in unemployment and that core services excluding shelter have not yet shown a sustained improvement. Investors are still worried about the inflation outlook as the labor demand in the United States economy is resilient and consumer spending is robust due to solid wage growth.

Meanwhile, S&P500 futures generated some losses in the London session, portraying a risk-off market mood. Investors remain concerned about the economic outlook as the Fed vowed to keep interest rates sufficiently restrictive until the accomplishment of the 2% inflation target.

The US Dollar Index (DXY) struggles to extend recovery above the immediate resistance of 105.80 as traders still bet that the Fed is done with hiking interest rates. As per the CME Fedwatch tool, traders see almost a 75% chance for interest rates remaining steady at 5.25%-5.50% at the November monetary policy meeting.

Silver technical analysis

Silver price aims to shift auction above the 50% Fibonacci retracement (plotted from August 30 high at $25.00 to September 14 low at $22.30) at $23.66 on a two-hour scale. Upward-sloping 20-period Exponential Moving Average (EMA) at $23.50 indicates that the short-term trend is bullish.

The Relative Strength Index (RSI) (14) aims to shift into the bullish range of 60.00-80.00. If the RSI (14) manages to do so, a bullish impulse would get activated.

Silver two-hour chart

XAG/USD

Overview
Today last price 23.52
Today Daily Change -0.03
Today Daily Change % -0.13
Today daily open 23.55
 
Trends
Daily SMA20 23.51
Daily SMA50 23.67
Daily SMA100 23.63
Daily SMA200 23.47
 
Levels
Previous Daily High 23.78
Previous Daily Low 23.39
Previous Weekly High 23.78
Previous Weekly Low 22.81
Previous Monthly High 25.02
Previous Monthly Low 22.23
Daily Fibonacci 38.2% 23.63
Daily Fibonacci 61.8% 23.54
Daily Pivot Point S1 23.37
Daily Pivot Point S2 23.19
Daily Pivot Point S3 22.98
Daily Pivot Point R1 23.75
Daily Pivot Point R2 23.96
Daily Pivot Point R3 24.14

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD bounces back, trades above 1.0860

EUR/USD bounces back, trades above 1.0860

EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future. 

EUR/USD News

GBP/USD turns north ahead of the weekly close

GBP/USD turns north ahead of the weekly close

GBP/USD recovered above 1.2650 in the American session on Friday. The US Dollar lost its temporal momentum and ends the weekly with a soft note amid soft local data. Hawkish comments from BoE officials underpinned the Pound this week. 

GBP/USD News

Gold resumes advance and approaches record highs

Gold resumes advance and approaches record highs

Gold price (XAU/USD) quickly changed course after the US opening, trading above $2,050 a troy ounce. The US Dollar gave up intraday gains following the release of a worse.-than-anticipated IS Manufacturing PMI, indicating persistent weekends mid-Q4.

Gold News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report.  SOL price extends rally, yielding nearly 4% daily gains. 

Read more

Weekly focus: Disinflation continues

Weekly focus: Disinflation continues

This week, inflation came in below expectations in the euro area and the US. In the euro area, headline inflation fell much more than expected to 2.4% y/y (consensus: 2.7% y/y) in November from 2.9% in October.

Read more

Forex MAJORS

Cryptocurrencies

Signatures