- Silver price delivers volatile moves near $22.50 as US Dollar attempts recovery.
- Weekly jobless claims increased by 2K to 204K this week but remained below expectations of 215K.
- Silver price forms a Head and Shoulder pattern whose breakdown triggers a bearish reversal.
Silver price (XAG/USD) demonstrates a volatile action near $22.50 after the release of lower-than-anticipated weekly Jobless Claims data for the week ending September 22. The US Department of Labor reported that individuals claiming jobless claims for the first time increased by 2K to 204K from the previous week’s release but remained lower than expectations of 215K.
Meanwhile, the final reading of real Gross Domestic Product (GDP) for the April-June quarter remained in line with the previous estimate and the market expectation of 2.1% on an annualized basis.
The US Dollar Index (DXY) corrects to 106.20 after refreshing a six-month high near 106.80 as profit-booking kicks in. The broader bias for the US Dollar is still bullish as the US economy is resilient due to falling inflation, an upbeat labor market, and robust consumer spending. The 10-year US Treasury yields jump to near 4.65%, showing strength in expectations of one more interest rate hike from the Federal Reserve (Fed).
Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday that he is unsure whether the central bank has hiked enough to bring down core inflation to 2%.
For further guidance, investors will focus on the US core Personal Consumption Expenditure (PCE) price Index data for August, which will be published on Friday at 12:30 GMT.
Silver technical analysis
Silver price forms a Head and Shoulder chart pattern on a daily scale, which indicates a prolonged consolidation whose breakdown triggers a bearish reversal. The neckline of the aforementioned chart pattern is plotted from June 23 low at $22.11. The white metal trades below the 20-day Exponential Moving Average (EMA) at $23.15, which indicates that the short-term trend is bearish.
The Relative Strength Index (RSI) (14) slips below 40.00, indicating no signs of divergence and oversold, warranting more downside.
Silver daily chart
-638315056464856305.png)
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.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0850 after US inflation data
EUR/USD trades in positive territory above 1.0850 in the American session on Friday. The US Dollar struggles to preserve its strength following the April PCE inflation data and helps the pair hold its ground heading into the weekend.
GBP/USD retreats from 1.2765, holds on to modest gains
GBP/USD posted a two-day high peat at 1.2765 in the American session, as US data showed that the core PCE inflation held steady at 2.8% on a yearly basis in April. The pair retreated afterwards as risk aversion triggered US Dollar demand.
Gold falls towards $2,330 as the mood sours
US inflation-related data took its toll on financial markets. Wall Street turned south after the opening and without signs of easing price pressures in the world’s largest economy. The US Dollar takes the lead in a risk-averse environment.
Here’s why Chainlink price could crash 15% despite spike in social volume Premium
Chainlink price has flashed multiple sell signals after its recent climb, hinting at a short-term correction. This signal comes despite a double-digit growth in its social volume. LINK bulls need to exercise caution as this forecast is backed by on-chain metrics.
Week ahead – ECB rate cut might get eclipsed by BoC surprise and NFP report
ECB set to slash rates on Thursday, focus on forward guidance. But will the BoC take the lead when it meets on Wednesday? US jobs report eyed on Friday as Fed unyielding on cuts. OPEC+ might extend some output reductions into 2025.