Silver Price Forecast: XAG/USD falls after early gains from $29, near-term outlook remains firm

Source Fxstreet
Apr 19, 2024 11:36
  • Silver price retreats from day’s high amid no signs of retaliation from Iran after limited airstrike from Israel.
  • Fed’s hawkish guidance fails to prompt US bond yields.
  • Fed Williams is comfortable with more rate hikes if inflation remains persistent.

Silver price (XAG/USD) falls back while attempting to recapture crucial resistance of $29.00 in Friday’s European session. The white metal surrenders early gains, prompted by reports from the Middle East that Iran’s air defence destroyed three drones by the Israeli army. Israel has not yet confirmed that they made those attacks in retaliation to an airstrike by Iran on their state.

The near-term outlook for Silver remains firm as worsening geopolitical tensions will keep the safe-haven demand intact. Meanwhile, global markets exhibit an asset-specific action as risk-perceived currencies have recovered losses reported in early Asia, while global equites remain under pressure. S&P 500 futures have posted significant losses in the European session.

Yields on interest-bearing assets from the United States economy have plummeted despite the Federal Reserve (Fed) lean towards keeping interest rates higher for a longer period. 10-year US Treasury yields fall to 4.59%. A decline in bond yields diminish the opportunity cost of investment in bullions.

On Thursday, New York Fed President John Williams said he doesn't see urgency for rate cuts and warned that the central bank is ready to hike again if data suggests persistent price pressures.

The US Dollar Index (DXY) holds the 106.00 ground as Fed policymakers support keeping interest rates higher due to stubbornly high inflation, which has been fed by tight labor market conditions.

Silver technical analysis

Silver price remains in a tight range between $28 and $29 from last four trading sessions on an hourly timeframe. This demonstrates a sharp volatility contraction, which could explode in either direction. The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating indecisiveness among market participants.

Silver hourly chart

XAG/USD

Overview
Today last price 28.2
Today Daily Change -0.04
Today Daily Change % -0.14
Today daily open 28.24
 
Trends
Daily SMA20 26.73
Daily SMA50 24.82
Daily SMA100 24.1
Daily SMA200 23.7
 
Levels
Previous Daily High 28.66
Previous Daily Low 28.14
Previous Weekly High 29.8
Previous Weekly Low 26.88
Previous Monthly High 25.77
Previous Monthly Low 22.51
Daily Fibonacci 38.2% 28.46
Daily Fibonacci 61.8% 28.34
Daily Pivot Point S1 28.03
Daily Pivot Point S2 27.83
Daily Pivot Point S3 27.51
Daily Pivot Point R1 28.55
Daily Pivot Point R2 28.87
Daily Pivot Point R3 29.07

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
WTI seems vulnerable near $77 as hawkish Fed dents demand outlookWest Texas Intermediate (WTI), futures on NYMEX, look set to close the week on a bearish note.
Source  Fxstreet
West Texas Intermediate (WTI), futures on NYMEX, look set to close the week on a bearish note.
placeholder
Silver price today: Silver drops, according to FXStreet dataSilver prices (XAG/USD) fell on Thursday, according to FXStreet data.
Source  Fxstreet
Silver prices (XAG/USD) fell on Thursday, according to FXStreet data.
placeholder
Silver Price Analysis: XAG/USD rallies sharply as bulls’ target $30.00Silver’s rally continued Wednesday after a softer-than-expected Consumer Price Index (CPI) report in the United States (US) sent US yields tumbling, a tailwind for the precious metal.
Source  Fxstreet
Silver’s rally continued Wednesday after a softer-than-expected Consumer Price Index (CPI) report in the United States (US) sent US yields tumbling, a tailwind for the precious metal.
goTop
quote