- Silver price gains 0.22% on Tuesday, following a loss of 2.82%.
- Fed officials reiterated their commitment to tackling inflation; most expect the FFR at around 4.50/4.75% and acknowledged a possible recession.
- XAG/USD Price Analysis: Failure to conquer the 20-day EMA was the reason for sellers to move in and send prices towards their lows.
Silver price is recovering some ground as Wall Street closes with substantial losses. Market sentiment continues to deteriorate as US Fed policymakers emphasize the need for more rate hikes, even if it spurs a deceleration in the economy. At the time of writing, the XAG/USD is trading at $18.38 a troy ounce after hitting a daily high at $18.78, up by 0.38%.
During the day, the XAG/USD began trading near the day’s lows before rallying to the daily high. However, as US Treasury bond yields, particularly the 10-year benchmark note rate, knocked on the 4% threshold, investors seeking safety bought the greenback, a headwind for the white metal.
Fed officials crossing newswires during the day reinforced the central bank’s stance. St. Louis Fed President James Bullard said he expects the Federal funds rate (FFR) to edge towards the 4.50% threshold. At the same time, his colleague and Chicago’s Fed President, Charles Evans, estimates the FFR to end at around the 4.50/4.75% mark.
Later, the Minnesota Fed President Neil Kashkari, in a Wall Street Journal interview, said that “There’s a lot of tightening in the pipeline” and added that even though there are risks of overdoing, “we are moving at an appropriately aggressive pace,” Kashkari said. Of late, the Philadelphia Fed President Patrick Harket said, “We will do what it takes to get inflation under control.” If there is a recession, it would be a shallow one.
Data-wise, the US economic calendar featured August’s Durable Good Orders, which contracted 0.2% but were better than the 0.3% shrinkage estimated, while New Home Sales for the same period jumped by 0.685M, exceeding forecasts of 0.5M.
Later, the CB Consumer Confidence improved in September for the second consecutive month, up at 108 vs. forecasts of 104.6.
XAG/USD Price Analysis: Technical outlook
Given the abovementioned fundamental backdrop, the white metal price is clinging to its early gains but well below the daily highs. Failure to reclaim the 20-day EMA at around $18.83 a troy ounce triggered sell orders, while the Relative Strength Index (RSI) is still aiming downwards, further cementing the XAG/USD downward bias. If XAG/USD closes below yesterday’s low at $18.32, that could open the door for further losses, exposing the $18.00 figure ahead of the 2022 year-to-date low at $17.56.
XAG/USD Key Technical Levels
|Today last price||18.39|
|Today Daily Change||0.03|
|Today Daily Change %||0.16|
|Today daily open||18.36|
|Previous Daily High||19.03|
|Previous Daily Low||18.33|
|Previous Weekly High||19.92|
|Previous Weekly Low||18.77|
|Previous Monthly High||20.88|
|Previous Monthly Low||17.94|
|Daily Fibonacci 38.2%||18.6|
|Daily Fibonacci 61.8%||18.77|
|Daily Pivot Point S1||18.12|
|Daily Pivot Point S2||17.87|
|Daily Pivot Point S3||17.42|
|Daily Pivot Point R1||18.82|
|Daily Pivot Point R2||19.28|
|Daily Pivot Point R3||19.52|
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.