A recent Federal Open Market Committee meeting showed that half of its members expected an interest rate hike by 2022. As a result, silver (XAG/USD) has been climbing recently, trading at $23.50 today with an almost 2% gain in one session alone.
All these factors aid silver's climb to new heights due to their correlation with gold prices and demand for industrial use. Due to the inflationary pressure in the economy, investors are thinking of reserve safe-haven asset silver.
The recent FOMC minutes revealed the pace at which QE will reduce. However, it was announced yesterday that would only be billion dollars cut each year instead of a 20-billion planned initially because inflationary pressures are more substantial than anticipated.
Gold and silver are getting a boost from the US stock markets, which is seeing an increase in safe-haven assets. The dollar has seen some weakness recently but remains high due to low-interest rates.
Bond investors fear about Europe's economy slowing down further than anyone had expected already with Greece's debt crisis not being resolved yet either. As a result, the USD is weaker against gold and silver. But the USD is still dominating most of the major currencies, except safe-haven currencies like JPY and CHF.
Technical View:
Right Now, the silver price is holding above descending trendline, the price nearly 23.40.
If the H4 candle can close above the 23.50 price zone and descending channel, it may test the 24.00 prices. Breaking above the 24.00 price zone, the next target is the 24.80 price zone. 24.80 is Fibonacci 50% retracement area.
So, the market may go for some correction from the 24.80 price zone. But if it doesn't, breaking above 24.80 will open the door for the 25.80/26.00 price zone.
I don't think the market will break above the 26 price zone easily unless we see too many adverse U.S. economic reports.
On the other hand, breaking below the ascending trendline, the silver price may continue its downtrend again and may test the 21.50 price zone again.
All these factors aid silver's climb to new heights due to their correlation with gold prices and demand for industrial use. Due to the inflationary pressure in the economy, investors are thinking of reserve safe-haven asset silver.
The recent FOMC minutes revealed the pace at which QE will reduce. However, it was announced yesterday that would only be billion dollars cut each year instead of a 20-billion planned initially because inflationary pressures are more substantial than anticipated.
Gold and silver are getting a boost from the US stock markets, which is seeing an increase in safe-haven assets. The dollar has seen some weakness recently but remains high due to low-interest rates.
Bond investors fear about Europe's economy slowing down further than anyone had expected already with Greece's debt crisis not being resolved yet either. As a result, the USD is weaker against gold and silver. But the USD is still dominating most of the major currencies, except safe-haven currencies like JPY and CHF.
Technical View:
Right Now, the silver price is holding above descending trendline, the price nearly 23.40.
If the H4 candle can close above the 23.50 price zone and descending channel, it may test the 24.00 prices. Breaking above the 24.00 price zone, the next target is the 24.80 price zone. 24.80 is Fibonacci 50% retracement area.
So, the market may go for some correction from the 24.80 price zone. But if it doesn't, breaking above 24.80 will open the door for the 25.80/26.00 price zone.
I don't think the market will break above the 26 price zone easily unless we see too many adverse U.S. economic reports.
On the other hand, breaking below the ascending trendline, the silver price may continue its downtrend again and may test the 21.50 price zone again.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.