Silver Price Forecast: XAG/USD stays firm above $29 amid firm Fed rate-cut hopes

Source Fxstreet
Jun 19, 2024 14:40
  • Silver price holds the crucial support of $29.00 as Fed rate-cut bets surge.
  • The expectations for Fed rate-cut increase as progress in the US disinflation process has resumed.
  • Investors shift focus to the preliminary US S&P Global PMIs for June.

Silver price (XAG/USD) gains ground above the crucial support of $29.00 in Wednesday’s New York session. The white metal finds buyers amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.

The expectations for the Fed to begin unwinding its restrictive monetary policy framework rise due to a higher-than-expected United States (US) decline in the Consumer Price Index (CPI) and slower than forecasted growth in Retail Sales data for May. May’s data showed that progress in the disinflation process has resumed, and consumers cut heavily on discretionary spending as high inflation and interest rates by the Federal Reserve (Fed) have reduced the purchasing power of households.

Meanwhile, the market sentiment remains quiet as US markets are closed on Wednesday on account of Juneteenth. The US Dollar Index (DXY) edges down to near 105.20.

This week, investors will focus on the preliminary US S&P Global PMIs data for June, which will be published on Friday. The agency is expected to show a decline in the Composite PMI due to weakness in manufacturing as well as the service sector.

Silver technical analysis

Silver price trades in a Falling Channel chart pattern in which each pullback is considered a selling opportunity by market participants. The asset trades close to the 200-period Exponential Moving Average (EMA), which trades around $29.40, suggesting a consolidating ahead.

The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, indicating indecisiveness among market participants.

Silver four-hour chart

XAG/USD

Overview
Today last price 29.53
Today Daily Change -0.01
Today Daily Change % -0.03
Today daily open 29.54
 
Trends
Daily SMA20 30.29
Daily SMA50 29.03
Daily SMA100 26.54
Daily SMA200 24.84
 
Levels
Previous Daily High 29.68
Previous Daily Low 28.93
Previous Weekly High 30.26
Previous Weekly Low 28.66
Previous Monthly High 32.51
Previous Monthly Low 26.02
Daily Fibonacci 38.2% 29.39
Daily Fibonacci 61.8% 29.22
Daily Pivot Point S1 29.09
Daily Pivot Point S2 28.63
Daily Pivot Point S3 28.33
Daily Pivot Point R1 29.84
Daily Pivot Point R2 30.14
Daily Pivot Point R3 30.59

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Prioritize filling the $27,000 gap and even try higher.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Biden dropping re-election bid a question of when, not if- TD CowenInvesting.com-- President Joe Biden is likely to drop his bid for reelection, TD analysts said in a note, amid growing concerns over his health and whether he will be able to effectively run against R
Author  Investing.com
Investing.com-- President Joe Biden is likely to drop his bid for reelection, TD analysts said in a note, amid growing concerns over his health and whether he will be able to effectively run against R
goTop
quote