Silver Price Forecast: XAG/USD continues to consolidate near $22.80

Silver gets left out of broad-market risk-on party.
XAG/USD backslides from $23.10 to trade into familiar lows.
Risk appetite returns as investors herald the perceived end of Fed rate hikes.

Joshua Gibson FXStreet

Silver is getting left out of the broader market's post-Federal Reserve (Fed) celebration after Fed Chairman Jerome Powell struck a more dovish tone than many expected, and investors are stepping back into risk assets in anticipation of the formal end of the Fed's rate hike cycle.

Traders will now be looking ahead to eventual rate cuts from the Fed and jostling for position. Current markets are pricing in rate cuts to begin sometime in the latter half of 2024.

Despite the market's resurgence in risk appetite, Silver has been left out in the cold, with the XAG/USD getting left out in the cold.

Spot Silver bids have fallen back for the day even despite a bounce late in the US session, marking in the day's current low bid at $22.65.

XAG/USD Technical Outlook

Spot Silver bids feel from the day's early high of $23.12, getting knocked back below the $23.00 handle to trade in the sub-$22.80 region as XAG/USD returns to near-term swing low territory.

XAG/USD set an early week peak of $23.60 in Monday's rally that sent Spot Silver climbing almost 2.5%, but the week's cart action finds Silver testing back into familiar lows.

Despite April's double-top rally into the $26.00 handle, XAG/USD has spent most of 2023 cycling $23.00, and a notable lack of directional momentum in either direction leaves Silver hamstrung in the midrange, sticking close to the 200-day Simple Moving Average (SMA) that is currently grinding lower from $23.50.

XAG/USD Daily Chart

XAG/USD Technical Levels

XAG/USD

Overview
Today last price	22.78
Today Daily Change	-0.16
Today Daily Change %	-0.70
Today daily open	22.94

Trends
Daily SMA20	22.57
Daily SMA50	22.93
Daily SMA100	23.22
Daily SMA200	23.29

Levels
Previous Daily High	23.01
Previous Daily Low	22.54
Previous Weekly High	23.36
Previous Weekly Low	22.44
Previous Monthly High	23.7
Previous Monthly Low	20.68
Daily Fibonacci 38.2%	22.83
Daily Fibonacci 61.8%	22.72
Daily Pivot Point S1	22.65
Daily Pivot Point S2	22.36
Daily Pivot Point S3	22.18
Daily Pivot Point R1	23.12
Daily Pivot Point R2	23.3
Daily Pivot Point R3	23.59

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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