Silver Price Forecast: XAG/USD falls slightly from two-year high above $26.50 ahead of Fed Powell speech

Silver price drops slightly from fresh two-year high of $26.55 ahead of key events.
The near-term appeal is upbeat due to deepening geopolitical tensions.
The US Dollar corrects ahead of Fed Powell speech.

Sagar Dua FXStreet

Silver price (XAG/USD) faces nominal selling pressure after touching a fresh more than two-year high at $26.55 in the European session on Wednesday. The near-term demand for the white metal is upbeat due to deepening geopolitical tensions and a correction in the US Dollar.

Major agencies have accused Israel’s military for targeting charity staff who were advised to deliver necessities to civilians in Gaza. Non-yielding assets, such as Silver, expect higher investment in times of geopolitical uncertainty.

Meanwhile, a corrective move in the US Dollar has also boosted Silver prices. The US Dollar Index (DXY) drops to 104.73 despite the upbeat United States Manufacturing PMI data for March has improved the economic outlook.

In today’s session, investors will focus on the Federal Reserve (Fed) Chairman Jerome Powell’s speech, and the release of the ADP Employment Change and the Services PMI for March. Fed Powell’s speech could provide clues about when the central bank will start reducing interest rates. The ADP agency will report the number of jobseekers recruited by private employers.

Later this week, the publication of the US Nonfarm Payrolls (NFP) data for March will be the major event. The official labor market data could influence market expectations for Fed rate cuts at the June meeting.

Silver technical analysis

Silver price hits a fresh two-year high at $26.55 after breaking above the crucial resistance of $26.22 from 18 April 2022. The near-term demand is strong as the 20-week Exponential Moving Average (EMA) at $24.08 is sloping higher.

The 14-period Relative Strength Index (RSI) moves into the bullish range of 60.00-80.00, indicating that momentum towards the upside is strong.

(This story was corrected on April 3 at 12:00 GMT to say that Silver price has marked a new two-year high at $26.55 instead of $26.30. It was also corrected to say that resistance at $26.22 was from April 18 2022 instead of April 22)

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD stays offered, breaks below 1.1400…again

EUR/USD adds to Tuesday’s slight losses and drops below the 1.1400 yardstick in the latter part of Wednesday’s NA session. The pair’s decline comes in response to the persistent recovery in the US Dollar, which seems to have met extra support following the cautious tone from Fed’s Warsh in his comments at the ECB Forum.

Gold recovers but sellers hold the grip

Gold keeps the bullish performance in place on Wednesday, although is now giving away part of its earlier advance past the $4,100 mark per troy ounce. The precious metal’s marked rebound comes despite the US Dollar’s bid bias, higher US Treasury yields across the curve and positive headlines from the Middle East.

A preview of NFP

The number is of much greater importance than usual as the Fed moves away from a forecasting framework and towards a current-data / rebuilding-credibility framework.

Crypto Today: Bitcoin, Ethereum, XRP stay under pressure as investors turn more risk-averse

The cryptocurrency market trades under intense headwinds on Wednesday, led by Bitcoin’s (BTC) deepening sell-off below $60,000. The Crypto King hovers above $58,000.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.