Silver prices supported about the $25.00 level as attention turns to Yellen testimony


  • Spot silver is up on Tuesday, with the metal supported to the north of $25.00.
  • US flow has returned after MLK Day in the US on Monday and the mood of the market is upbeat.
  • Yellen’s testimony to Congress will be the market's main immediate focus.

Spot silver (XAG/USD) prices are up on Tuesday, with the metal crossing back above and remain supported to the north of the $25.00 per troy ounce mark. At present, the precious metal trades with gains of about 0.5% or just over 10 cents, supported primarily by the weaker US dollar (the Dollar Index has dropped back below the 90.50 mark from Monday’s near 91.00 highs).

Driving the day

US flow has returned after North American market closures there on account of Monday’s MLK Day holidays and the mood of the markets has become a little more upbeat; US equities just saw a positive open, US bond yields are higher, crude oil and industrial metal markets are (for the most part) up and in FX, safe-haven USD and JPY are currently underperforming.

No theme or news, in particular, can be pointed to as to why markets are in a slightly more optimistic mood on Tuesday. Seemingly, the main driver has been a technical correction of Monday’s risk-off flows with markets actually in much more of a “wait and see mode” ahead of key risk events coming up.

Speaking of key risk events, the main focus on the mind of investors this Monday is going to be incoming US Treasury Secretary Janet Yellen’s testimony to the Senate Finance Committee in Congress. Most of the key parts of her testimony have already been leaked to the media.

On fiscal stimulus; she is expected to call for the US government to “act big” in terms of fiscal stimulus given the low-rate environment (effectively an endorsement of incoming US President Joe Biden’s $1.9T fiscal stimulus package). In the past, Yellen has advocated for the US to pursue a balanced budget, but is not expected to do so on Tuesday.

Regarding the US dollar; Yellen is expected to clarify that the US will be taking a “hands-off” approach to exchange rates, which might also be accompanied by a thinly veiled warning to US trade partners that they ought to do the same (rather than actively seeking to weaken their currency to boost exports).

After Yellen speaks, trade ought to quiet down for the rest of the session. Depending on how the US dollar reacts, precious metals markets will likely act as a function of this. As ever, traders would be wise to also keep an eye on any reaction in real yields and inflation expectations; any drop in the former and move higher in the latter could come as a boost to the likes of silver and gold.

XAG/Usd

Overview
Today last price 25.13
Today Daily Change 0.19
Today Daily Change % 0.76
Today daily open 24.94
 
Trends
Daily SMA20 25.99
Daily SMA50 24.93
Daily SMA100 24.93
Daily SMA200 22.32
 
Levels
Previous Daily High 25.16
Previous Daily Low 24.19
Previous Weekly High 25.89
Previous Weekly Low 24.34
Previous Monthly High 27.41
Previous Monthly Low 22.59
Daily Fibonacci 38.2% 24.79
Daily Fibonacci 61.8% 24.56
Daily Pivot Point S1 24.36
Daily Pivot Point S2 23.79
Daily Pivot Point S3 23.39
Daily Pivot Point R1 25.34
Daily Pivot Point R2 25.74
Daily Pivot Point R3 26.32

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD falls off the highs ahead of central bank speeches

GBP/USD is trading above 1.41 but off the new 2021 peak of 1.4240. Speculation about a quicker UK reopening and rate hikes from the BOE. Governor Bailey and Fed Chair Powell are set to speak later.

GBP/USD News

EUR/USD: edges higher ahead of Powell's second appearance

EUR/USD has been rising above 1.2170 as the market mood improves. Fed Chair Jerome Powell is set to testify again in Congress after pledging to keep supporting the economy on Tuesday and weighing on the dollar. The euro is struggling with another vaccine delivery delay.

EUR/USD News

ADA bulls light up the fire for a massive 80% move

Cardano has broken above an ascending triangle’s hypotenuse, kick-starting upswing to $1.4. Technical levels are generally improving, as reinforced by the bullish MACD indicator. A correction will return into the picture if ADA fails to hold above the 50 SMA.

Read more

XAU/USD struggles for direction, stuck in a range above $1800 mark

Gold struggled to capitalize on its intraday positive move and remained confined in a range. The underlying bullish sentiment, pickup in the US bond yields collaborated towards capping. The bias seems tilted in favour of bearish traders and supports prospects for further weakness.

Gold news

US Dollar Index: Looks neutral/bearish near-term

DXY keeps the rangebound trading in the 90.00 region, always supported by the key 2020-2021 support line (near 89.80).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures