Silver Price News: XAG/USD buyers approach $22.00 despite firmer US Dollar, focus on Fed Minutes

Silver price grinds higher after three-day winning streak.
Upbeat US data, yields underpin US Dollar rebound and probe XAG/USD bulls.
A mentioning of Fed policymakers’ discussion on pivot could propel Silver price.

Anil Panchal FXStreet

Silver price (XAG/USD) seesaws around $21.85 as bulls take a breather during early Wednesday, after three-day uptrend. In doing so, the bright metal fails to respect the US Dollar’s latest rebound but shows traders’ anxiety ahead of the week’s key event.

That said, the XAG/USD bulls could have traced the hopes of more industrial demand amid a recent jump in the manufacturing activity data from major economies, including the UK, the US, Germany and Europe.

On the other hand, the US Dollar Index (DXY) snapped a two-day downtrend to regain 104.00 on Tuesday, grinding higher around 104.20 by the press time, as the US PMIs for February propelled hawkish Fed bets.

It should be noted that the preliminary readings of the US S&P Global Manufacturing PMI rose to 47.8 from 46.9 prior and versus 47.3 market forecasts while the Services PMI jumped to the eight-month high to 50.5 compared to 47.2 expected and 46.8 previous readings. As a result, the S&P Global Composite PMI surpassed 47.5 analysts’ consensus and 46.8 previous reading to mark 50.2 figure.

Following the data, the FEDWATCH tool signals that the money market participants see the benchmark level peaking at 5.3% in July, and staying near those levels throughout the year, versus 5.10% expected by the US Federal Reserve (Fed).

Other than the Fed bets, the upbeat US data also propelled the US Treasury bond yields as the benchmark 10-year bond coupon refreshed a three-month high near 3.95%. Further, the two-year counterpart also jumped to the highest levels since early November 2022, to 4.73% at latest, which in turn propelled the US Dollar and should have capped the XAG/USD upside.

Elsewhere, Wall Street closed in the red as geopolitical fears emanating from Russia and China joined the aforementioned hawkish Fed bets, as well as downbeat earnings forecasts from the tops US retailers including Home Depot and Wall Mart.

Moving on, Fed Minutes should be eyed for policy pivot talks considering the latest cautiously optimistic tone of the policymakers. That said, XAG/USD may rally in case of a policymarkers’ discussion on pausing the rate hikes trajectory.

Technical analysis

Despite the latest rebound, Silver price needs to provide a daily closing beyond the 100-DMA, around $22.00 by the press time.

Additional important levels

Overview
Today last price	21.86
Today Daily Change	0.04
Today Daily Change %	0.18%
Today daily open	21.82

Trends
Daily SMA20	22.68
Daily SMA50	23.31
Daily SMA100	21.99
Daily SMA200	21.02

Levels
Previous Daily High	21.91
Previous Daily Low	21.55
Previous Weekly High	22.08
Previous Weekly Low	21.18
Previous Monthly High	24.55
Previous Monthly Low	22.76
Daily Fibonacci 38.2%	21.77
Daily Fibonacci 61.8%	21.69
Daily Pivot Point S1	21.61
Daily Pivot Point S2	21.4
Daily Pivot Point S3	21.26
Daily Pivot Point R1	21.97
Daily Pivot Point R2	22.12
Daily Pivot Point R3	22.33

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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