- Silver price is marching towards $24.00 as the USD Index has refreshed its day’s low at 103.21.
- More downside is in the pipeline as a neutral policy stance by the Fed will trim policy divergence of the Fed with other central banks.
- Silver price has witnessed a responsive buying move after a failed breakdown below the Rising Channel pattern.
Silver price (XAG/USD) has climbed above the immediate resistance of $23.86 and is now approaching $24.00 barricade in the European session. The reason behind the strength in the white metal is the expectations of a neutral interest rate policy announcement by the Federal Reserve (Fed).
S&P500 futures have added gains recently in the European session as hopes of further interest rate hikes by the Fed have faltered. The risk appetite of the market participants is extremely solid, which has improved the appeal for risk-perceived assets.
The US Dollar Index (DXY) has printed a fresh day’s low at 103.21. More downside is in the pipeline as a neutral policy stance by Fed chair Jerome Powell will trim policy divergence of the Fed with other central banks. Also, the yields offered on 10-year US Treasury bonds have dropped sharply below 3.81%.
No doubt, a neutral interest rate policy is widely anticipated, however, the street believes that the dot plot would remain hawkish. There are clear signs that United States inflation is softening and labor market conditions are releasing heat. However, current Employment conditions are broadly resilient, and inflationary pressures are double the desired rate. Fed policymakers would be needed severe ‘blood and sweat’ in easing inflation comfortably around 2%.
Silver technical analysis
Silver price has witnessed a responsive buying move after a failed breakdown below the Rising Channel chart pattern on a two-hour scale. In a Rising Channel pattern, each pullback is considered a buying opportunity by the market participants.
The white metal has managed to rebound above the 200-period Exponential Moving Average (EMA) at $23.83, which indicates that the long-term bullish trend is intact.
Adding to that, the Relative Strength Index (RSI) (14) has rebounded into the 40.00-60.00 range, which indicates a bullish reversal.
Silver two-hour chart
-638223292871944990.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0450 German sentiment data
EUR/USD stays in positive territory above 1.0450 after retracing a portion of its bullish opening gap. The data from Germany showed that the IFO - Current Assessment Index declined to 84.3 in November from 85.7, while the Expectations Index edged lower to 87.2 from 87.3.
GBP/USD pulls back toward 1.2550 as US Dollar sell-off pauses
GBP/USD is falling back toward 1.2550 in the European session on Monday after opening with a bullish gap at the start of a new week. A pause in the US Dollar decline alongside the US Treasury bond yields weighs down on the pair. Speeches from BoE policymakers are eyed.
Gold price manages to hold above $2,650 amid sliding US bond yields
Gold price maintains its heavily offered tone through the early European session on Monday, albeit manages to hold above the $2,650 level and defend the 100-period Simple Moving Average (SMA) on the 4-hour chart. Scott Bessent's nomination as US Treasury Secretary clears a major point of uncertainty for markets.
Bitcoin consolidates after a new all-time high of $99,500
Bitcoin remains strong above $97,700 after reaching a record high of $99,588. At the same time, Ethereum edges closer to breaking its weekly resistance, signaling potential gains. Ripple holds steady at a critical support level, hinting at continued upward momentum.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.