- Silver price seeks intermediate support as the US Dollar strengthens after upbeat Retail Sales data.
- Strong consumer spending momentum has boosted US consumer inflation expectations.
- Silver price forms a Head and Shoulder chart pattern, which is a trend reversal pattern.
Silver price (XAG/USD) demonstrated a volatile action after the United Census Bureau reported that Retail Sales data outperformed expectations. The white metal seeking a cushion near $22.40 but the outlook seems vulnerable as strong consumer spending momentum has boosted consumer inflation expectations.
Retail Sales for August expanded at a higher pace of 0.6% vs. estimates of 0.2% and July’s reading of 0.5%. The economic data excluding automobiles rose at a slightly slower pace of 0.6% vs. the former reading of 0.7% while investors anticipated a 0.2% pace.
Along with, the US Department of Labor showed that individuals claiming jobless benefits for the first time rose by 220K while investors anticipated higher jobless claims at 225K. In the previous week, jobless benefits were recorded at 216K. Jobless claims remained higher than the prior week's figures after declining straight for five weeks.
The US Dollar Index (DXY) prints a fresh six-month high at 105.30 as strong retail demand could elevate consumer inflation expectations and encourage Federal Reserve (Fed) policymakers to deepen discussions about one more interest rate increase in the remaining year. The 10-year US Treasury yields rose sharply to 2.28%.
Silver technical analysis
Silver price forms a Head and Shoulder chart pattern on a daily scale, which is a trend reversal pattern. The neckline of the aforementioned chart pattern is plotted from June low around 22.18. A declining 20-period Exponential Moving Average (EMA) indicates that the short-term trend is bearish.
The Relative Strength Index (RSI) (14) shifts into the bearish range of 20.00-40.00, which indicates that the downside impulse has strengthened.
Silver daily chart
-638302979227637605.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 higher ground above 1.0800 ahead of US payrolls
EUR/USD is holding higher ground above 1.0800 in the European session on Friday. The pair extends its week-long winning streak amid a broad US Dollar weakness and an upbeat market mood. The further upside hinges on the US Nonfarm Payrolls data release.
GBP/USD rises toward 1.2800 after a landslide Labour victory
GBP/USD extends gains toward 1.2800 in the European session on Friday. The Pound Sterling is underpinned by the landslide Labour Party victory in the UK general election while the US Dollar awaits the Nonfarm Payrolls data for fresh directives.
Gold continues positive run as investors foresee lower interest rates
Gold rises on Friday, continuing its run of positive days as investors become increasingly optimistic the Fed will lower interest rates sooner than previously thought, and the US Dollar softens, adding a lift to Gold which is predominantly bought and sold in Dollars.
Bitcoin falls below $56,000 level
BTC breached the weekly support level of $58,375 on Thursday; as of Friday, it is trading 2.8% lower at $55,314. ETH and XRP have dropped below crucial support thresholds.
Nonfarm Payrolls forecast to grow by 190K in June as Fed ponders rate-cut timing
With US Federal Reserve Chairman Jerome Powell’s Sintra appearance out of the way, all eyes now remain on top-tier Nonfarm Payrolls data for June, due on Friday at 12:30 GMT.