Silver Price Analysis: XAG/USD turns choppy below $22 as focus shifts to US Inflation data

Silver price trades sideways below $22.00 as Middle East tensions improve appeal for safe-haven assets.
The US Dollar remains under pressure as Fed policymakers support keeping interest rates steady.
Silver price turns sideways in a range of $21.40-22.00 after an upside move.

Sagar Dua FXStreet

Silver price (XAG/USD) trades sideways below $22.00 and seems gathering strength for a fresh upside as Middle East tensions have improved appeal for the safe-haven assets. The white metal is well expected to move higher as the US Dollar Index (DXY) is struggling for a firm footing after neutral interest rate guidance from Federal Reserve (Fed) policymakers.

S&P500 futures added some gains in the European session, portraying an improvement in the risk appetite of the market participants. The USD Index faces pressure due to improved market mood. The broader risk theme is still downbeat due to fears of stretch in the Israel-Hamas conflict beyond Gaza.

The US Dollar remains under pressure as Dallas Fed Bank President Lorie Logan and Vice Chair Philip Jefferson supported keeping interest rates steady due to rising Treasury yields, which have already ramped up borrowing rates.

Meanwhile, investors turned worried about the global economic outlook as higher oil prices could add to inflationary pressures ahead. IMF chief economist Pierre Gourinchas said on Tuesday, that the “IMF research indicates a 10% increase in Oil prices would weigh down on global output by about 0.2% in the following year, boost global inflation by about 0.4%.”

Silver technical analysis

Silver price turns sideways in a range of $21.40-22.00 after an upside move. The precious metal got strengthened after a breakout of the consolidation formed in a range of $20.70-21.40. The 50-period Exponential Moving Average (EMA) at $21.66 is acting as a support for the Silver price bulls.

The Relative Strength Index (RSI) (14) shifts into the 40.00-60.00 range, which signifies a rangebound performance ahead.

Silver hourly chart

XAG/USD

Overview
Today last price	21.66
Today Daily Change	-0.22
Today Daily Change %	-1.01
Today daily open	21.88

Trends
Daily SMA20	22.46
Daily SMA50	23.05
Daily SMA100	23.36
Daily SMA200	23.38

Levels
Previous Daily High	22.02
Previous Daily Low	21.57
Previous Weekly High	22.2
Previous Weekly Low	20.68
Previous Monthly High	24.82
Previous Monthly Low	22.12
Daily Fibonacci 38.2%	21.85
Daily Fibonacci 61.8%	21.74
Daily Pivot Point S1	21.63
Daily Pivot Point S2	21.38
Daily Pivot Point S3	21.19
Daily Pivot Point R1	22.08
Daily Pivot Point R2	22.27
Daily Pivot Point R3	22.52

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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