Silver Price Forecast: XAG/USD jumps to near $23 as US Dollar corrects sharply despite sticky inflation

Silver price climbs to near $23.00 as the US Dollar remains subdued.
Investors hope that the impact of higher interest rates by the Fed will be lower than keeping them higher for a longer period.
Silver price delivers a breakout of the Falling Wedge chart pattern.

Sagar Dua FXStreet

Silver price (XAG/USD) extends upside sharply to near the crucial resistance of $23.00 as the upside momentum in the US Dollar Index (DXY) fades after failing to sustain above 103.50. The white metal strengthens as investors hope that the impact of higher interest rates by the Federal Reserve (Fed) will be lower than keeping them higher for a longer period.

S&P500 opens on a mildly positive note as investors’ risk appetite improves. Overall market mood is still cautious as the United States inflation outlook turns extremely sticky due to stronger wage growth. The 10-year US Treasury yields continue to trade around 4.30% as robust consumer spending momentum elevates upside risks to inflation.

The US Dollar Index (DXY) finds some support near 103.00 as the US Department of Labor reported lower-than-expected jobless claims. Individuals claiming jobless benefits for the first time dropped to 239K vs. expectations of 240K and the former release of 250K for the week ending August 11.

Meanwhile, Federal Open Market Committee (FOMC) minutes released on Wednesday delivered a clear message that the inflationary environment is still uncertain and further policy action will be more dependent on the incoming data.

Silver technical analysis

Silver price delivers a breakout of the Falling Wedge chart pattern formed on an hourly scale. A breakout of the aforementioned chart pattern results in a bullish reversal. Silver price climbs above the 50-period Exponential Moving Average (EMA) around $22.63.

A break by the Relative Strength Index (RSI) (14) above 60.00 will activate the bullish momentum.

Silver hourly chart

XAG/USD

Overview
Today last price	22.72
Today Daily Change	0.30
Today Daily Change %	1.34
Today daily open	22.42

Trends
Daily SMA20	23.66
Daily SMA50	23.6
Daily SMA100	24.03
Daily SMA200	23.28

Levels
Previous Daily High	22.78
Previous Daily Low	22.41
Previous Weekly High	23.68
Previous Weekly Low	22.58
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	22.55
Daily Fibonacci 61.8%	22.64
Daily Pivot Point S1	22.29
Daily Pivot Point S2	22.16
Daily Pivot Point S3	21.91
Daily Pivot Point R1	22.66
Daily Pivot Point R2	22.91
Daily Pivot Point R3	23.04

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.

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