Silver Price Forecast: XAG/USD seesaws around the $23.30-60 range, after US data, ahead FOMC minutes


  • XAG/USD remained subdued in the Asian and the European session as investors await FOMC minutes.
  • XAG/USD did not react to earlier US economic data.
  • XAG/USD: The break of an upslope support trendline on Tuesday, could accelerate the downfall towards $23.00.

Silver (XAG/USD) edges lower during the New York session, down 0.80%, trading at $23.47 at the time of writing. The market sentiment is downbeat and has been like that since Monday when US President Joe Biden renominated Jerome Powell to the Fed for a second four-year period. That benefitted the greenback, with the US Dollar Index closing to the 97.00 figure, sitting at 96.89, up some 0.42%.

Meanwhile, US bond yields are down, except for the short-term ones. The 2-year and the 5-year are rising three and one basis point each, sitting at 0.64% and 1.34%, respectively. The 10-year US Treasury yield is down one basis point, currently at 1.65%.

Further, despite that nominal yields in the long term are lower, real yields have jumped from -1.91% up to -1.67% in the last couple of weeks, thus weighing on the non-yielding metal, as it seems investors start to price in higher interest rates in the US in 2022.

The US economic docket featured the Initial Jobless Claims for the week ending on November 20 increased up to 199K, better than the 260K estimated by analysts, the lowest since 1969. Moving to the Federal Reserve’s favorite gauge for inflation, the Personal Consumption Expenditure (PCE) Price Index increased by 4.1% YoY in October, in line with the median economist forecasts and confirmed a 0.4% rise from last month’s upwardly revised reading of 3.7%.

XAG/USD Price Forecast: Technical outlook

From the technical perspective, the white metal has been trading lower, leaving the 100 and the 200-day moving averages (DMA’s) above the spot price, whereas the 50-DMA lying at $23.53, is support for silver, though at press time, seems to be giving way to USD bulls. Further, the break of a two-month-old upslope support trendline on Tuesday opened the door for further downward pressure on the precious metal.

In the outcome of XAG/USD continuing lower, the first demand area would be the November 23 swing low at $23.27. A breach of the abovementioned would expose November 3 cycle low at $23.02, followed by the August 9 pivot low at $22.17.

On the other hand, if silver reclaims the $24.00 handle, that could pave the way for further upside. The first resistance would be the September 3 swing high at $24.87, immediately followed by $25.00.

XAG/USD

Overview
Today last price 23.46
Today Daily Change -0.21
Today Daily Change % -0.89
Today daily open 23.67
 
Trends
Daily SMA20 24.37
Daily SMA50 23.54
Daily SMA100 24.06
Daily SMA200 25.28
 
Levels
Previous Daily High 24.32
Previous Daily Low 23.28
Previous Weekly High 25.41
Previous Weekly Low 24.56
Previous Monthly High 24.83
Previous Monthly Low 22
Daily Fibonacci 38.2% 23.68
Daily Fibonacci 61.8% 23.92
Daily Pivot Point S1 23.19
Daily Pivot Point S2 22.71
Daily Pivot Point S3 22.14
Daily Pivot Point R1 24.24
Daily Pivot Point R2 24.8
Daily Pivot Point R3 25.28

 

 

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 retreats to 1.1350 on firmer yields, ECB Minutes eyed

EUR/USD is trading around 1.1350, paring back gains amid a rebound in the US dollar. The US Treasury yields remain lifted on the hawkish Fed outlook and a better market mood. Eurozone Final CPI, ECB minutes awaited. 

EUR/USD News

GBP/USD consolidates below 1.3650 as US dollar tracks yields higher

GBP/USD is consolidating gains below 1.3650, as firmer Treasury yields fuel a rebound in the US dollar across the board. Looming UK political and Brexit uncertainties limit the pair's upside. Hotter inflation in Britain keeps the BOE rate hike expectations intact. 

GBP/USD News

Gold keeps its sight on $1,850 bullish target

Gold price has stalled its upsurge, consolidating below two-month highs of $1,844 amid firmer yields. China’s policy easing driven risk-on mood also limits gold’s gains. Although decade-high inflation rates globally have gold bulls covered. 

Gold News

Shiba Inu price faces tough challenges ahead before SHIB returns to $0.00004327

Shiba Inu price is struggling to break out of the prevailing chart pattern formation as it continues to record lower highs. However, the governing technical pattern projects a 46% ascent toward $0.00004327.

Read more

CBRT Preview: USD/TRY poised to run at the slightest sign Premium

The Turkish Central Bank will announce its decision on monetary policy on Thursday, January 20. The CBRT is expected to remain on hold after slashing rates 500 bps.

Read more

Forex MAJORS

Cryptocurrencies

Signatures