- 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
|Today last price||22.56|
|Today Daily Change||-0.07|
|Today Daily Change %||-0.31|
|Today daily open||22.63|
|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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