Silver Price Forecast: XAG/USD faces strong resistance at the confluence of the 50/100-DMA


  • Silver is the only one gaining, up 0.08% in the precious metal segment.
  • Mixed US macroeconomic data ignored by US dollar buyers, the DXY edges down 0.20%.
  • XAG/USD Technical Outlook: Neutral bearish, per DMAs located above the spot price.

Silver (XAG/USD) advances for the third consecutive day, up some 0.08%, trading at $23.14 at the time of writing. The white metal is the only precious metal that advances in the session, as Gold drops some 0.34%, while Platinum and Cooper fall 0.39% and 0.60%, respectively.

In the meantime, the US Dollar Index (DXY), a gauge of the greenback’s value against a basket of other peers, slides 0.20%, sits at 94.722, even though US T-bond yields are flat at 1.727%.

US macroeconomic data came mixed

Before Wall Street opened, the US economic docket featured Initial Jobless Claims for the week ending January 7. The reading came at 230K, higher than the 200K foreseen, whereas the Producer Price Index (PPI) for December, which measures the prices paid for producers, advanced by 9.7%, though barely lower than the 9.6% estimated on an annual basis, a reading that contradicts the US Consumer Price Index (CPI) revealed on Wednesday, which showed that the US consumer inflation rose by 7.0%, the highest level since 1982.

Fed speakers continue to cross newswires

On Thursday, the Fed speaking parade continued. Philadelphia’s Fed President Patrick Harker coincided with fellow policymakers, who have penciled three-rate hikes in 2022, though Harker noted that he is open to a fourth one. He said the Fed needs to act faster than in the previous Quantitative Tightening concerning the balance sheet reduction. 

In the same tone, the Fed’s Vice-Chairwoman nominee Lael Brainard said that the US central bank could hike as soon as March to ensure that the Fed would tame inflation towards the Fed’s target level. She said, “The committee has projected several hikes over the course of the year.”

Meanwhile, Richmond Fed President Thomas Barkin said that the labor shortage “might be a long-lasting phenomenon.” Barkin noted that as the US central bank adjusts the balance sheet down to normal levels, it will impact reserves.

XAG/USD Price Forecast: Technical outlook

XAG/USD is neutral-bearish from a technical analysis perspective. The reason is that the spot price remains below the daily moving averages (DMAs), which are bearish-aligned with the shorter time-frame ones beneath the longer time ones.

That said, at press time, the non-yielding metal faces strong resistance at the confluence of the 100 and the 50-DMA, which lie at $23.29 and $23.30, respectively.

On the downside, the first support level would be the psychological $23.00. A breach of the latter would expose December 29, 2021, swing low at $22.59, followed by $22.00.

XAG/USD

Overview
Today last price 23.14
Today Daily Change -0.05
Today Daily Change % -0.22
Today daily open 23.19
 
Trends
Daily SMA20 22.75
Daily SMA50 23.2
Daily SMA100 23.29
Daily SMA200 24.68
 
Levels
Previous Daily High 23.22
Previous Daily Low 22.65
Previous Weekly High 23.41
Previous Weekly Low 21.96
Previous Monthly High 23.44
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 23
Daily Fibonacci 61.8% 22.87
Daily Pivot Point S1 22.82
Daily Pivot Point S2 22.45
Daily Pivot Point S3 22.25
Daily Pivot Point R1 23.39
Daily Pivot Point R2 23.6
Daily Pivot Point R3 23.97

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1300 as dollar keeps its strength ahead of Fed

EUR/USD is trading in the negative territory below 1.1300 on Wednesday as markets wait for the FOMC to announce its policy decisions following its two-day meeting. The US Dollar Index holds above 96.00 ahead of the American session, supported by the modest recovery seen in US Treasury bond yields. 

EUR/USD News

GBP/USD holds above 1.3500 for now on improving sentiment

GBP/USD is posting modest daily gains above 1.3500, supported by the positive shift seen in market sentiment. The UK's FTSE 100 Index is rising more than 1.5% and S&P Futures are up 2.4% ahead of the Fed's policy announcements. 

GBP/USD News

Gold on the defensive below $1,850, focus remains on FOMC

A combination of factors dragged gold away from over two-month high touched on Tuesday. A recovery in the risk sentiment, Fed rate hike bets acted as a headwind for the commodity.

Gold News

Dogecoin short squeeze will launch DOGE to $0.25

Dogecoin price has been on a wild ride over the past few weeks. After gaining more than 50% between January 11 and January 15, DOGE dropped a further 44% to print new nine-month lows. 

Read more

Bank of Canada Rate Decision Preview: No surprises for a 25bps rate hike Premium

BOC to keep the overnight rate steady at 0.25% at its first policy meeting of 2022. A surprise 25-bps rate hike cannot be ruled out amid hotter Canadian inflation, labor market. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures