Silver Price Analysis: XAG/USD remains subdued in low $24.00s amid broad risk appetite recovery


  • Silver prices have traded in subdued fashion on Friday as a sharp pick up in risk appetite dampened safe-haven demand.
  • Spot prices have remained subdued in the low $24.00s with the $24.50 mark acting as a ceiling.
  • As the war in Ukraine rages on and the Western sanctions response to Russia evolves, uncertainty remains high.

A surge in risk appetite that has seen US equity push back to highs on the week and risk-sensitive currencies perform well is weighing heavily on safe-haven assets like precious metals, government bonds and the US dollar and yen. Hopes that there might be an opportunity for diplomacy between Russia and Ukraine that could bring an end to the war just as it is getting started are one factor fuelling the better mood. The West’s “soft” sanction response to Russia (so far) that has avoided hitting the country’s energy sector is another. Spot silver (XAG/USD) prices have unsurprisingly struggled to make headway on the final trading day of the week, with the $24.50 level acting as a ceiling to the price action.

At current levels around $24.10, silver prices are down about 0.5% on the day and nearly 6.0% lower versus Thursday’s highs above $25.50. Whether the air continues to come out of silver’s recent geopolitical tensions-fuelled rally (XAG/USD is still up more than 7.0% on the month) will be headline dependent. If the chatter about talks between Moscow and Kyiv that could result in an early end to the war does continue to gain traction, that could be a negative catalyst that sends spot silver back below $24.00.

Alternatively, momentum seems to be building towards Western nations kicking Russia out of the SWIFT international payments system, which could reignite some fears about economic disruption. If momentum also builds towards energy sanctions, economic uncertainty and demand for inflation protection could easily lift XAG/USD back above its 200-Day Moving Average at $24.20 and into the upper $24.00s. Traders should remain on their toes. Dependent on developments over the weekend, things could go either way quite aggressively next Monday.

XAG/Usd

Overview
Today last price 24.13
Today Daily Change -0.03
Today Daily Change % -0.12
Today daily open 24.16
 
Trends
Daily SMA20 23.35
Daily SMA50 23.18
Daily SMA100 23.36
Daily SMA200 24.2
 
Levels
Previous Daily High 25.62
Previous Daily Low 23.84
Previous Weekly High 24.09
Previous Weekly Low 23.08
Previous Monthly High 24.7
Previous Monthly Low 21.96
Daily Fibonacci 38.2% 24.52
Daily Fibonacci 61.8% 24.94
Daily Pivot Point S1 23.46
Daily Pivot Point S2 22.77
Daily Pivot Point S3 21.69
Daily Pivot Point R1 25.24
Daily Pivot Point R2 26.32
Daily Pivot Point R3 27.01

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bears flirt with 0.6900 amid recession woes, Aussie Retail Sales, Fed’s Powell eyed

AUD/USD bears flirt with 0.6900 amid recession woes, Aussie Retail Sales, Fed’s Powell eyed

AUD/USD remains depressed around 0.6900, after a two-day downtrend, as traders await key Aussie data during Wednesday’s Asian session. That said, the risk barometer pair refreshed its weekly high before closing in the red for the second consecutive day on Tuesday.

AUD/USD News

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD is trading around 1.0520 in early Asia following a choppy Tuesday on the back of a firmer US dollar, China relaxing its rigid COVID protocols coupled with disappointing US consumer sentiment data and central bank rhetoric. 

EUR/USD News

Gold eyes further downside towards $1,800, Fed Chair Powell in focus

Gold eyes further downside towards $1,800, Fed Chair Powell in focus

Gold Price remains on the back foot around $1,820, despite the recent bounce off intraday low. In doing so, the yellow metal prints a three-day downtrend as traders await the week’s key data/events amid a sluggish Asian session on Wednesday.

Gold News

Compound price: You won't believe how high COMP can rally

Compound price: You won't believe how high COMP can rally

Compound's COMP price could be a very favorable digital asset in the coming weeks. This article is meant to inform investors of data excluded on Tradingview's Binance, Coinbase and Kucoin exchanges for reasons that have yet to be explained. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures