Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Silver Price Outlook: XAG/USD Relief Rally Buoyed by Dollar Weakness

Silver Price Outlook: XAG/USD Relief Rally Buoyed by Dollar Weakness

Tammy Da Costa, Analyst
What's on this page

Silver (XAG/USD) Talking Points

USD Forecast
USD Forecast
Recommended by Tammy Da Costa
Get Your Free USD Forecast
Get My Guide

Silver Prices Rebound Ahead of Upcoming Event Risk

Silver prices have bounced back after a brutal setback that resulted in a 1.59% decline yesterday. With the futures contract currently recovering over 1.00% of those losses, USD weakness ahead of this week’s GDP and inflation data has limited losses.

image1.png

For all market-moving events and data releases, see the real-time DailyFX Calendar

Despite the ECB (European Central Bank) and Federal Reserve echoing their intention to continue to hike rates, a slowdown in growth forecasts has boosted the demand for safe-haven metals.

With both Silver and Gold holding a reputation as a hedge against inflation, expectations of a slower pace of tightening has overshadowed the hawkish narrative expressed by central banks.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
Trading Forex News: The Strategy
Get My Guide

Silver (XAG/USD) Technical Analysis

After a brief retest of the 61.8% Fibonacci retracement of the 2008 – 2011 move at 24.220, XAG/USD peaked at 24.775 in early Jan. Although bulls attempted to reclaim this level last week, a rejection of the 17 Jan high of 24.670 forced prices lower.

Silver (XAG/USD) Weekly Chart

A picture containing text, sky, screenshot, line  Description automatically generated

Chart prepared by Tammy Da Costa using TradingView

As the above-mentioned Fibonacci level continues to provide support and resistance for the short-term move, prices reached a high of 24.295 before moving lower.

While sellers took this opportunity to drive prices below psychological support at 23.00, the 50-day MA helped cap the downside move.

The swift retaliation from bulls to push Silver higher resulted in a long lower-wick appearing on yesterday’s candle. This suggests that both the psychological level and the moving average will likely remain as key support (at least for now).

Silver (XAG/USD) Daily Chart

Chart, histogram  Description automatically generated

Chart prepared by Tammy Da Costa using TradingView

Silver (XAG/USD) Technical Levels

Looking ahead, a hold above 23.00 and above the March 2021 low of 23.740 could allow for bullish continuation towards psychological resistance at $24.00.Above that, bulls would need to clear the 24.220 Fib level which could pave the way for a move back towards last week's high of 24.670.

-- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES