Silver Prices Gain On A Softer USD
- Silver prices rise as the Dollar softens.
- The technical outlook remains bearish below the March 31 swing high of $15.56.
- The latest U.S. Jobless Claims figures are to be published today and may influence the price of silver.
- This evening, the Fed's Yellen is set to speak in New York, along with Greenspan, Bernanke, and Volcker.
Some Fed members leaned towards hiking rates in April, while others disagreed, citing the weak global economy as a potential risk factor when assessing U.S. economic health.
However, the markets have made up their mind and the Fed Funds futures are currently pricing a zero percent probability of a rate hike at the next (April) rate meeting. Even for this year’s December rate meeting, the markets are only giving it a 53.7% likelihood of a rate hike, while the Fed itself projects two rate hikes before the year is out.
For more on this please read: FOMC Minutes From March Show Mixed Emotions for April Hike
The technical trend for silver prices remains bearish below the March 31 swing high of $15.56, as the March 31 level is lower than the prior swing high of $16.03 (formed on March 22). The sequence of both lower highs and lower lows is a strong indication that the trend is bearish.
Support levels are currently at last week’s low of $14.81 followed by the March 1 low of $14.75 and February 29 low of $14.64.
The latest U.S. Jobless Claims figures are to be published today and may influence the price of silver. Economists in a Bloomberg survey project a decline to 270k from 276k. This evening, the Fed's Yellen is set to speak in New York, along with Greenspan, Bernanke, and Volcker.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.