Silver (XAG/USD) buzz
Recommended by Tammy da Costa
Get Free US Dollar Forecasts
Silver Price Rebounds Ahead of Upcoming Event Risk
Silver prices have rebounded after a brutal setback that fell 1.59% yesterday. Futures contracts are now recovering more than 1.00% of those losses, limited by a weak US dollar ahead of this week’s GDP and inflation data.
For all market-moving events and data releases, real-time DailyFX Calendar
Slowing growth forecasts are boosting demand for safe-haven metals, despite the European Central Bank (ECB) and Federal Reserve (Fed) pledging to keep raising interest rates.
With both silver and gold retaining their reputation as hedges against inflation, expectations of a slow pace of tightening have overshadowed the hawkish narratives articulated by central banks.
Recommended by Tammy da Costa
Trading Forex News: Strategies
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 January. low.
Silver (XAG/USD) Weekly Chart
chart creator Tammy da Costa Using TradingView
As the Fibonacci levels above continue to provide short-term movement support and resistance, the price reached a high of 24.295 before falling.
Sellers took the opportunity to break the price below the 23.00 sentiment support, but the 50-day moving average helped contain the downside move.
A quick retaliation from the bulls lifted silver, resulting in a long low wick in yesterday’s candle. This suggests that both the psychological level and the moving averages are likely to remain the primary supports (for now, at least).
Silver (XAG/USD) daily chart
chart creator Tammy da Costa Using TradingView
Silver (XAG/USD) Technical Level
Looking ahead, a hold above 23.00 and above the March 2021 low of 23.740 could allow a bullish continuation towards psychological resistance at $24.00. Above that, the bulls will have to clear his 24.220 Fib level, which could pave the way back to last week’s high of 24.670.
— Written by DailyFX.com Analyst Tammy Da Costa
Contact and follow Tammy on Twitter. @Tams707