Silver Price Analysis: XAG/USD slides to near $22.70 as Fed speakers maintain hawkish stance

Silver price falls sharply to near $22.70 as Fed Waller denied early rate cut discussions.
The USD Index has climbed to near 103.50 amid a risk-off mood.
Investors await the US Retail Sales and the Industrial Production data for further guidance.

Sagar Dua FXStreet

Silver price (XAG/USD) faces an intense sell-off as Federal Reserve (Fed) policymakers are maintaining the narrative of keeping interest rates higher for a longer period. The white metal has extended its downside to near $22.70 and is expected to remain on the tenterhooks ahead of the United States Retail Sales and Industrial Production data.

S&P500 futures have posted some losses in the Asian session, portraying further decline in the risk-appetite of the market participants.

The US Dollar Index (DXY) has rallied to near 103.50 as Fed Governor Christopher Waller said the central bank could not rush to rate cuts amid revision risks in inflation prints. He added that the Fed will reduce interest rates only if inflation continues to moderate. While the 10-year US Treasury yields have dropped marginally to little above 4.0%.

As per the CME Fedwatch tool, chances in favour of an interest rate cut by 25 basis points (bps) have declined to 62% after a hawkish commentary from Fed Waller.

Going forward, market participants will focus on the US monthly Retail Sales data for December, which will be published at 13:30 GMT. The economic data is seen growing by 0.4% against 0.3% increase in November. The Industrial Production is expected to remain stagnant.

Silver technical analysis

Silver price is declining towards the crucial support that is plotted from December 13 low around $22.51 on a four-hour scale. The 200-period Exponential Moving Average (EMA) around $23.48 has been acting as a major barricade for the Silver price bulls.

The 14-period Relative Strength Index (RSI) has slipped below 40.00, which indicates that a bearish momentum has been triggered.

Silver four-hour chart

XAG/USD

Overview
Today last price	22.69
Today Daily Change	-0.23
Today Daily Change %	-1.00
Today daily open	22.92

Trends
Daily SMA20	23.54
Daily SMA50	23.67
Daily SMA100	23.24
Daily SMA200	23.61

Levels
Previous Daily High	23.25
Previous Daily Low	22.86
Previous Weekly High	23.53
Previous Weekly Low	22.48
Previous Monthly High	25.92
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	23.01
Daily Fibonacci 61.8%	23.1
Daily Pivot Point S1	22.77
Daily Pivot Point S2	22.62
Daily Pivot Point S3	22.38
Daily Pivot Point R1	23.16
Daily Pivot Point R2	23.4
Daily Pivot Point R3	23.55

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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