Silver Price Analysis: XAG/USD remains capped below $23.00 area


  • Silver prices bounce from $21.40 lows but remain limited below the $23.00 resistance area.
  • Precious metals depreciate against a firmer USD on inflation concerns.
  • XAG/USD: targeting $23.77 while above $21.87/17 – Commerzbank.

Silver prices have found support at $21.40 earlier on Wednesday to pare earlier losses and return to the upper range of $22.00. The pair, however, has lost steam again, right below $23.00.

Precious metals depreciate as the US dollar firms up

Silver and other precious metals have been trading lower amid a risk-averse sentiment on Wednesday. Investors' fears about surging inflationary pressures have boosted the US dollar across the board on safe-haven flows amid higher US T-Bond yields.

The increase in oil prices, with the WTI reaching fresh seven-year highs at $79.80 has triggered concerns about the possibility that inflation might pose a challenge to the post-pandemic recovery and add pressure to the Federal Reserve to accelerate its plan to normalize monetary policy.

XAG/USD: likely to extend beyond $23.00while above $21.87/17 – Commerzbank

From a technical perspective, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, observes further upward potential on the precious metal: “Silver has sold off to test its long-term pivotal support at $21.87/17, which have so far held. These represent the September and November 2020 lows and also July 2014 high and 2016 high. These are considered to be a major band of support and we expect them to act as a floor for the market.”

Technical levels to watch

XAG/USD

Overview
Today last price 22.56
Today Daily Change -0.07
Today Daily Change % -0.31
Today daily open 22.63
 
Trends
Daily SMA20 22.88
Daily SMA50 23.65
Daily SMA100 25.15
Daily SMA200 25.69
 
Levels
Previous Daily High 22.71
Previous Daily Low 22.37
Previous Weekly High 22.85
Previous Weekly Low 21.42
Previous Monthly High 24.87
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 22.5
Daily Fibonacci 61.8% 22.58
Daily Pivot Point S1 22.43
Daily Pivot Point S2 22.24
Daily Pivot Point S3 22.1
Daily Pivot Point R1 22.76
Daily Pivot Point R2 22.9
Daily Pivot Point R3 23.1

 

 

 

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