Silver Price Forecast: XAG/USD finds support near $30 but remains feeble amid firm US Dollar

Source Fxstreet
May 24, 2024 07:37
  • Silver price steadies above $30.00 but is prone to more downside amid multiple headwinds.
  • The US Dollar strengthens as Fed supports maintaining interest rates at their current levels for longer.
  • Strong US economic outlook has negatively impacted Fed rate-cut prospects for September.

Silver price (XAG/USD) finds temporary support near the psychological support of $30.00 in Friday’s European session after witnessing a sharp sell-off in the past two trading session. The outlook for the Silver price is still uncertain as investors are losing confidence over the Federal Reserve (Fed) returning to policy normalization in the September meeting.

The CME FedWatch tool shows that the probability for rate cuts in September has reduced to 53% from 64% recorded a week ago. Diminished Fed rate-cut bets are the outcome of hawkish Fed’s commentary on interest rates and upbeat United States (US) economic outlook. Fed officials have been communicating the need to maintain interest rates at their current levels for a longer period until they get evidence that inflation will sustainably return to the desired rate of 2%.

The US economic outlook has improved as early S&P Global PMI report for May has shown that both Manufacturing and Services PMI surprisingly beat their prior readings.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence commented on data, “The US economic upturn has accelerated again after two months of slower growth, with the early PMI data signalling the fastest expansion for just over two years in May. The data put the US economy back on course for another solid GDP gain in the second quarter.”

The US Dollar Index (DXY) exhibits strength near 105.00 due to Fed’s hawkish stance on the interest rate outlook and firm US economic prospects. Going forward, investors will focus on the US Durable Goods Orders data for April, which will be published at 12:30 GMT. Fresh orders for Durable Goods are estimated to have declined by 0.8% after expanding 2.6% in March.

XAG/USD

Overview
Today last price 30.45
Today Daily Change 0.32
Today Daily Change % 1.06
Today daily open 30.13
 
Trends
Daily SMA20 28.57
Daily SMA50 27.39
Daily SMA100 25.2
Daily SMA200 24.25
 
Levels
Previous Daily High 30.98
Previous Daily Low 30.07
Previous Weekly High 31.6
Previous Weekly Low 27.97
Previous Monthly High 29.8
Previous Monthly Low 24.75
Daily Fibonacci 38.2% 30.42
Daily Fibonacci 61.8% 30.63
Daily Pivot Point S1 29.8
Daily Pivot Point S2 29.48
Daily Pivot Point S3 28.89
Daily Pivot Point R1 30.72
Daily Pivot Point R2 31.31
Daily Pivot Point R3 31.63

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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