By NewsBlogger The silver market has seen increased investment due to geopolitical tensions and a correction in the US Dollar, while the gold market is climbing steadily towards $2,300 amid high US Treasury bond yields and a soft US Dollar, with investors closely watching Fed Chairman Jerome Powell’s upcoming speech for potential interest rate reductions.
At a glance
- Silver market experiencing nominal selling pressure after reaching a more than two-year high at $26.55
- Investors turning to non-yielding assets like silver during times of geopolitical uncertainty.
- A recent corrective move in the US Dollar boosted silver prices.
- Investors are closely watching Fed Chairman Jerome Powell’s upcoming speech for insight into potential interest rate reductions.
- The gold market is climbing steadily, aiming for the $2,300 psychological figure amid high US Treasury bond yields and a soft US Dollar.
The details
The silver market has been experiencing nominal selling pressure after reaching a more than two-year high at $26.55. Geopolitical tensions and a correction in the US Dollar have influenced this surge in silver prices.
Major agencies have accused Israel’s military of targeting charity staff in Gaza, adding to the uncertainty in the market.
Investors have turned to non-yielding assets like silver during times of geopolitical uncertainty, leading to increased investment in the precious metal.
The recent corrective move in the US Dollar has also boosted silver prices, with the US Dollar Index dropping to 104.73 despite positive US Manufacturing PMI data.
Investors are closely watching Fed Chairman Jerome Powell’s upcoming speech, as it may provide insight into potential interest rate reductions by the central bank.
Additionally, the ADP Employment Change report and Services PMI for March are anticipated events that could impact market sentiment.
Gold Market Climbing
On the other hand, the gold market has been climbing steadily, aiming for the $2,300 psychological figure amid high US Treasury bond yields and a soft US Dollar.
The XAU/USD spot price is currently at $2,295, reaching all-time highs and gaining more than 0.60%.
Fed Chair Jerome Powell has stated that the US central bank has time to deliberate about rate cuts, given the strength of the economy and inflation readings.
Powell has reiterated that if the economy evolves as expected, borrowing costs may be cut at some point this year.
Rate Cut Forecast
Atlanta Fed President Raphael Bostic has forecasted a rate cut in the final quarter of 2024 and envisions inflation aligning with the Fed’s 2% target by 2026.
Technical analysis suggests bullish confirmation for the silver price, with the 14-day Relative Strength Index (RSI) above the 50 mark, indicating buying momentum.
The Moving Average Convergence Divergence (MACD) also shows divergence above the signal line, supporting a bullish outlook for silver prices.
Immediate resistance for silver is seen at the year-to-date high of $27.33, followed by a major level at $27.50. A breakthrough above $27.50 could lead silver prices to explore the region around $28.00. However, downward pressure may occur if silver price breaks below key support levels at $26.50, $26.00, and the 23.6% Fibonacci retracement level at $25.94.
Overall, the precious metals market is experiencing significant movements and uncertainties driven by geopolitical tensions, economic data, and central bank policies.
Investors are advised to closely monitor these developments for potential trading opportunities.
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| fxstreet.com |
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| – Silver price faces nominal selling pressure after reaching a more than two-year high at $26.55 – Near-term demand for silver is influenced by geopolitical tensions and a correction in the US Dollar – Major agencies have accused Israel’s military of targeting charity staff in Gaza – Non-yielding assets like silver see increased investment during geopolitical uncertainty – A corrective move in the US Dollar has boosted silver prices – US Dollar Index drops to 104.73 despite positive US Manufacturing PMI data – Investors are focused on Fed Chairman Jerome Powell’s speech, ADP Employment Change, and Services PMI for March – Powell’s speech may provide insight into potential interest rate reductions by the central bank – ADP agency will report on jobseekers recruited by private employers – US Nonfarm Payrolls data for March will be a significant event later in the week – Silver price hit a two-year high at $26.55 after breaking resistance at $26.22 from April 18, 2022 – Near-term demand remains strong with the 20-week EMA at $24.08 sloping higher – 14-period RSI moves into the bullish range of 60.00-80.00, indicating strong momentum towards the upside |
| fxstreet.com |
|---|
| – Gold price is climbing steadily, aiming for the $2,300 psychological figure amid high US Treasury bond yields and a soft US Dollar – XAU/USD spot price is at $2,295, reaching all-time highs and gaining more than 0.60% – Fed Chair Jerome Powell stated the US central bank has time to deliberate about rate cuts, given the strength of the economy and inflation readings – Powell reiterated that if the economy evolves as expected, they will cut borrowing costs at some point this year – Atlanta Fed President Raphael Bostic acknowledged the robust momentum of the economy but stressed the necessity for growth and inflation to decelerate – Bostic forecasts a rate cut in the final quarter of 2024 and envisions inflation aligning with the Fed’s 2% target by 2026 – US economic calendar highlighted employment figures and Services PMI – ADP reported higher-than-expected private sector job growth in March, indicating a robust labor market favorable to the US Dollar – Signs of slowing business activity from recent S&P Global and ISM Services PMI reports have limited the US Dollar’s recovery – XAU/USD daily chart suggests the yellow metal is heading toward the $2,300 figure amid renewed buying pressures observed in the Relative Strength Index (RSI) – RSI has punched above the 80.00 threshold, indicating that buyers are in charge – Next resistance levels for XAU/USD would be $2,300, $2,350, and $2,400 – If XAU/USD drops below $2,250, a correction could be sponsored with support levels at $2,200, $2,195, and $2,150 |
| fxstreet.com |
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| – Silver price attempts to snap five-day winning streak, trading near $27.00 per troy ounce – Upward support for Silver price due to US Dollar losing ground – Key support for Silver price around $26.50, $26.00, and 23.6% Fibonacci retracement level at $25.94 – Downward pressure if Silver price breaks below key support levels – Technical analysis suggests bullish confirmation for Silver price – 14-day Relative Strength Index (RSI) above 50 mark, indicating buying momentum – Moving Average Convergence Divergence (MACD) shows divergence above signal line – Immediate resistance at year-to-date high of $27.33, followed by major level at $27.50 – Breakthrough above $27.50 could lead Silver price to explore region around $28.00 |
