Silver Price Analysis: XAGUSD holds comfortably above $21.00, just below 200-day SMA

Silver stages a goodish rebound from over a one-week low touched on Thursday.
The overnight break and close below the 200-day SMA favours bearish traders.
Any subsequent move up might confront stiff resistance near the $21.70 region.

Haresh Menghani FXStreet

Silver regains some positive traction on Friday and recovers a part of the previous day's heavy losses to a one-and-half-week low. The white metal sticks to its gains around the $21.20-$21.25 region through the first half of the European session and for now, seems to have snapped a three-day losing streak.

From a technical perspective, the overnight sustained weakness and a decisive close below the key 200-day SMA favours bearish traders. The said support breakpoint is currently pegged around the $21.40 area and should act as a pivotal point for intraday traders. A sustained strength beyond has the potential to lift the XAGUSD towards the $21.70 horizontal barrier.

The momentum could further get extended towards the $22.00 mark, which is followed by the multi-month peak, around the $22.25 region touched on Tuesday. Some follow-through buying will be seen as a fresh trigger for bulls and set the stage for further gains. Spot prices might then test the $22.50-$22.60 supply zone and eventually reclaim the $23.00 round figure.

On the flip side, the overnight swing low, around the $20.75 region, now seems to protect the immediate downside ahead of the $20.40-$20.35 support. The next relevant support is pegged near the $20.00 psychological mark. Failure to defend the latter will negate any near-term positive bias and make the XAGUSD vulnerable to extending the downward trajectory.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	21.26
Today Daily Change	0.29
Today Daily Change %	1.38
Today daily open	20.97

Trends
Daily SMA20	20.36
Daily SMA50	19.73
Daily SMA100	19.5
Daily SMA200	21.44

Levels
Previous Daily High	21.49
Previous Daily Low	20.75
Previous Weekly High	22.06
Previous Weekly Low	20.39
Previous Monthly High	21.24
Previous Monthly Low	18.09
Daily Fibonacci 38.2%	21.04
Daily Fibonacci 61.8%	21.21
Daily Pivot Point S1	20.65
Daily Pivot Point S2	20.33
Daily Pivot Point S3	19.91
Daily Pivot Point R1	21.39
Daily Pivot Point R2	21.81
Daily Pivot Point R3	22.13

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD hangs below mid-0.7100s amid bullish USD, ahead of FOMC meeting

AUD/USD remains on the back foot during the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. However, rising RBA rate-hike bets could limit deeper losses for the Aussie.

USD/JPY sticks to gains near mid-154.00s as traders await Fed/BoJ meetings

USD/JPY attracts some buyers for the second straight day on Tuesday, though it remains below a one-week high touched the previous day as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the currency pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and cap spot prices.

Gold seems vulnerable below $4,300 as traders await FOMC meeting

Gold struggles below $4,300 during the Asian session on Tuesday and remains vulnerable near a one-month low, touched the previous day. Fed rate-hike expectations and inflation concerns remain supportive of elevated US bond yields, underpinning the US Dollar and weighing on the non-yielding bullion. Bears, however, might wait for the outcome of a two-day FOMC meeting on Wednesday before placing fresh bets.

Bitcoin pushes past $79K as markets anticipate Fed meeting, Strategy stays put

Bitcoin rose above $79,000 on Monday as the broader crypto market enters a closely watched week for policymakers. According to QCP analysts, markets have largely priced in a 25-basis-point Federal Reserve rate increase after the release of August inflation data last week. The focus has shifted toward how policymakers communicate their outlook for future rate moves.

Eight reasons why the Fed should raise rates

The FOMC meeting on September 15–16 is expected to mark a turning point with the Fed’s first rate hike since May 2023. While there may have been economic reasons to hold off and maintain the status quo until now (some negative signals on the employment front and some encouraging ones on the inflation front), the conditions for a necessary recalibration now appear to be in place.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.