Silver market looks higher

Muhammad Umair, PhD Gold Predictors

The silver market has produced a bottom between $17 and $18 and is exploding higher with robust momentum. As previously stated, December is expected to be a positive month with choppy price fluctuations. December was slightly positive with bullish price action. Inflation and interest rate increases in the United States have contributed to the development of strong bottom in the silver market. The silver advance during the last quarter of 2022 was not unexpected. The development of an inverted head and shoulders on the weekly and daily charts for silver was identified. Based on these patterns, strong upward move was expected a few months ago.

What is next in Silver market?

The silver market has exceeded the resistance level at $22.25 and moved higher. The formation of inverted head and shoulder are powerful bullish patterns that aim for $27 as the short-term resistance. The next resistance was $30, which is also a long-term pivot. The inverted head and shoulder formation was developed in such a way that the head of these patterns consists of a triple bottom. The triple bottom indicates that silver may begin to encounter long-term resistance around $30 and then $35.

The long-term support for the silver market has been identified as $17.60, where the market has not closed below this level on weekly basis. Since silver is more volatile than gold, if precious metals bottom in 2022 due to fears of higher inflation and recession, silver could outperform gold in 2023, thereby increasing the likelihood of reaching the $50 long-term objective. The daily updated silver chart is shown below.

The weakening of the U.S. dollar index will add further strength to the silver prices. Following the formation of ascending broadening patterns on the chart below, the US dollar index is about to break to the downside. A decline from here will decrease the value of the US dollar, which will increase the demand for silver. A decline from the ascending broadening is likely to extend the dollar’s long-term decline to the 88-92 levels.

Unlock exclusive gold and silver trading signals and updates that most investors don’t see. Join our free newsletter now!

Author

Muhammad Umair, PhD

Gold Predictors

Muhammad Umair is a financial markets analyst and investor who focuses on the forex and precious metals markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.