By NewsBlogger The price of silver fluctuated, dropping to around $25.00 a troy ounce, with XAG/USD trading at approximately $25.03, as US Treasury bond yields rose in anticipation of the Federal Open Market Committee meeting.
At a glance
- The price of silver dropped to around $25.00 a troy ounce on Monday, with XAG/USD trading at approximately $25.03, representing a decrease of 0.57%.
- The US Treasury bond yields rose in anticipation of the Federal Open Market Committee (FOMC) meeting, strengthening the value of the Greenback.
- Silver sellers are looking to push the price below $24.79, with further downside expected at $24.00.
- Positive Chinese and US economic data, along with forecasts of increased global demand for silver, have led to optimistic projections for the metal in the coming years.
- Gold prices faced pressure, dropping to $2,150 during the European session due to the strength of the US Dollar and uncertainty surrounding the Federal Reserve’s upcoming monetary policy decision.
The details
The price of silver fluctuated in the market, dropping to around $25.00 a troy ounce on Monday, with XAG/USD trading at approximately $25.03, representing a decrease of 0.57%. US Treasury bond yields rose in anticipation of the Federal Open Market Committee (FOMC) meeting, which in turn strengthened the value of the Greenback.
The daily chart for silver exhibited a ‘bearish harami’ candlestick pattern, indicating a potential downward trend.
Silver Price Outlook
Sellers are looking to push silver’s price below the March 15 swing low of $24.79, with further downside expected at $24.00. The Relative Strength Index (RSI) indicator showed a decline, suggesting a weakening market sentiment.
If XAG/USD falls below $25.00, it could trigger a challenge of the support level at $24.60, while staying above $25.00 may lead to a test of the year-to-date high at $25.44 or potentially even $26.00.
Recent US inflation data revealed high inflation rates, delaying anticipated interest rate cuts by the Federal Reserve.
Silver, being a non-yielding asset, is influenced by interest rates, as well as industrial demand and global growth prospects.
Market Projections
Positive Chinese and US economic data, along with analysts’ forecasts of increased global demand for silver due to its various applications, have led to optimistic projections for the metal in the coming years.
The Silver Institute predicts a strong demand for silver in 2024, potentially marking its second-best year on record.
XAG/USD is currently trading in the $25.10s, pulling back from its recent highs, and could potentially rally towards $29.50 or even $32.00 if it breaks above $25.85.
Gold prices faced pressure, dropping to $2,150 during the European session due to the strength of the US Dollar and uncertainty surrounding the Federal Reserve’s upcoming monetary policy decision.
Gold Price Analysis
With expectations of interest rates remaining unchanged but with potential rate-cut projections causing price pressures, investors have scaled back their bets on a rate cut in June.
While slightly falling to 4.32%, the 10-year US Treasury yields remain strong despite hopes of a delayed Fed rate cut.
Gold is currently trading sideways between $2,145 and $2,165, with potential downside movements towards the 20-day Exponential Moving Average at $2,097. Key support levels include the December 4 high near $2,145 and the December 28 high at $2,088. The RSI retraced from its peak but still indicates active upside momentum in the gold market.
Traders and investors are advised to monitor these market trends closely in light of the upcoming events and decisions that may impact the precious metals market.
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| fxstreet.com |
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| – Silver’s price dropped to around $25.00 a troy ounce on Monday – US Treasury bond yields rose ahead of the Federal Open Market Committee (FOMC) meeting – US 10-year Treasury bond yield advance underpins the Greenback – XAG/USD trades at around $25.03, down by 0.57% – The grey metal daily chart formed a ‘bearish harami’ candlestick chart pattern – Sellers need to extend Silver’s losses beneath the March 15 swing low of $24.79 – The Relative Strength Index (RSI) indicator was barren from entering overbought conditions – RSI edges lower – If XAG/USD falls below $25.00, that might open the door to challenge December’s 22 high turned support at $24.60 – Further downside is seen at $24.00 – If buyers hold XAG/USD spot price above $25.00, that could open the door to test the current year-to-date (YTD) high of $25.44 – Buyers could also test $26.00 |
| fxstreet.com |
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| – Silver price (XAG/USD) is trading in the $25.10s after pulling back at the start of the week – Recent US inflation data showed inflation remaining high, delaying expected interest rate cuts by the Federal Reserve – Silver is a non-yielding asset and is affected by interest rates, but also by industrial demand and global growth outlook – Chinese data showed higher-than-expected rise in Industrial Production, Fixed Asset Investment, and Retail Sales – US Industrial Production beat estimates in February, showing improvement from January – Analysts predict increased global demand for Silver due to its use in Solar Panels, electronic devices, and jewelry – The Silver Institute forecasts robust demand for Silver in 2024, predicting it will see its second best year on record – XAG/USD pulls back after almost reaching the top of a range between $19.00 and $26.00 – A break above $25.85 could indicate a breakout to the upside, potentially rallying to around $29.50 or just shy of $32.00 – If the pair breaks out of the broader range, it could target $37.50 – Alternatively, Silver could face resistance at the range highs in the $25.80-90s and pull back down – Traders should watch for a decisive break higher before making decisions, characterized by a long green daily candle or three green candles in a row piercing clearly above the level and closing near its high |
| fxstreet.com |
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| – Gold price drops to $2,150 in European session due to strong US Dollar – Uncertainty ahead of Federal Reserve’s monetary policy decision and release of quarterly dot plot affecting Gold appeal – Fed expected to keep interest rates unchanged, but rate-cut projections causing Gold price pressure – Investors scaling back bets on Fed reducing interest rates in June, putting further downside pressure on Gold – 10-year US Treasury yields fall slightly to 4.32% but remain strong on hopes of delayed Fed rate cut – Higher-than-expected consumer and producer inflation data casting doubts on policy pivot in June- Gold price faces pressure with limited upside ahead of Fed’s interest rate decision – Precious metal trades sideways between $2,145 and $2,165, likely to break trend after Fed meeting – Gold may continue downside towards 20-day Exponential Moving Average at $2,097 – Asset tends to face mean-reversion move after wide divergence, resulting in price or time correction – Major support levels at December 4 high near $2,145 and December 28 high at $2,088 – 14-Relative Strength Index retraces from peak near 84.50, but upside momentum still active |
