Silver Price Forecast: XAG/USD bulls reclaimed the $19.00 ahead of Jackshon Hole event

The silver price climbed 0.70% amidst a downbeat market sentiment, which weighed on the greenback.
Higher US Treasury yields put a lid on XAG/USD prices.
Market players’ focus turns to Wednesday’s Durable Good Orders, alongside Fed speaking on Friday, led by Chair Powell.

Christian Borjon Valencia FXStreet

Silver price erases Monday’s losses and is higher as Wall Street’s ended the day with minimal losses, amidst a dismal sentiment propelled by US economic data dropping to contractionary readings. Also, traders are preparing for an expected hawkish speech by Federal Reserve Chairman Jerome Powell in Jackson Hole, which bolstered silver’s appeal, to the detriment of the US dollar At the time of writing, XAG/USD is trading at $19.11 up by 0.70%.

US equities finished the day in the red. Earlier in the New York session, S&P Global reported US PMIs, for August, with the Services and Composite indices plunging to contractionary territory, each with readings at 44.1 and 47, respectively. Contrarily, the Manufacturing Index downtick to 51.3 but remained in expansionary territory, despite missing estimates.

In the US data release, the US dollar weakened across the board, with the US Dollar Index sliding from around 109.000 to 108.200. On the contrary, US T-bond yields rose, led by the 10-year US Treasury yield, up by four bps, sitting at 3.057%, a headwind for silver prices.

Additionally, US housing data portrayed that New Home Sales dipped to their slowest pace since 2016, dropping for the sixth consecutive month, as the market continues to deteriorate as the Federal Reserve tightens monetary policy. New Home Sales dropped by 0.51M vs. estimations of 0.575M.

What to watch

The US economic docket will feature Durable Good Orders for July, alongside Housing Data, illustrating that the US economy is slowing down on Wednesday.

Silver Key Technical Levels

XAG/USD

Overview
Today last price	19.11
Today Daily Change	0.11
Today Daily Change %	0.58
Today daily open	19

Trends
Daily SMA20	19.96
Daily SMA50	19.97
Daily SMA100	21.43
Daily SMA200	22.57

Levels
Previous Daily High	19.16
Previous Daily Low	18.72
Previous Weekly High	20.88
Previous Weekly Low	19.03
Previous Monthly High	20.37
Previous Monthly Low	18.15
Daily Fibonacci 38.2%	18.89
Daily Fibonacci 61.8%	18.99
Daily Pivot Point S1	18.76
Daily Pivot Point S2	18.52
Daily Pivot Point S3	18.32
Daily Pivot Point R1	19.19
Daily Pivot Point R2	19.39
Daily Pivot Point R3	19.63

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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