Silver Prices Soften As The Dollar Gains Ahead Of Yellen Speech
- Silver prices slid below the March 16 low of $15.22, which has triggered a short-term bearish trend.
- The next level of support is the March 3 low of $14.87.
- U.S. Home Price Index, Consumer Confidence are on deck this afternoon and so is Fed’s Yellen, who is speaking to the Economic Club of New York.
- Traders will scrutinize Yellen’s speech for clues about what’s next for the Feds Funds rate.
This morning silver prices slid below the March 16 low of $15.22, which has triggered losses and a short-term bearish trend. The business press reports that precious metals are softer on a stronger dollar.
The short-term trend defining level for silver is the March 28 high of $15.39, as it’s the latest swing high and preceded by the March 22 high of $16.02. The next level of support is the March 3 low of $14.87, followed by the March 1 low of $14.75.
Data which may disrupt the down trend this afternoon are U.S. Home Price Index and Consumer Confidence. The former is expected to show an increase of 5.75% YoY, while the latter is projected to rise to 94 from 92.2 (according to a Blomberg survey). See our economic calendar.
By the end of today’s London session, Fed’s Janet Yellen speaks to the Economic Club of New York, and may hint what’s next for Fed’s Funds rate.
U.S. Overnight-index-swaps are currently pricing in 32 bps of rate hikes over the next 12 months.
Silver Price | FXCM: XAG/USD
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00