Silver (XAG/USD) price has been sideways for the past few days. There hasn’t been any significant price action since I last covered the precious metal. The latest analysis reveals that Gold and Silver prices are preparing for a major move. However, the direction of this move is not that easy to predict.
After a 1.49% bounce last week, Silver price per ounce is up 0.49% this week. A slight pullback in DXY index has worked in favor of the bullion. The price may keep trading sideways until the mid of this month when the June 2023 CPI data is set to be released.
Since the pause in rate hikes after last month’s FOMC meeting, the risk appetite of the investors seems to have increased. The effect is quite evident from the recent surge in stocks, which has taken the benchmark indices like S&P 500 and NASDAQ 100 to yearly highs.
This has resulted in a pullback in safe-haven assets like Gold & Silver, which had been rising since the start of 2023. Nevertheless, analysts are still bullish on the precious metals as the Fed is still expected to increase rates twice this year. Even after a pause, the rates may remain high for the foreseeable future.
Despite a pullback, the XAG/USD still doesn’t look very bearish. The price has bounced off the 0.618 fib retracement level, which often results in major reversals. Another confluence behind this bounce is the trendline which is visible on the following chart.
Silver price prediction may flip very bullish if the price breaks above the $24.5 resistance level. This may send the price to fresh yearly highs. The invalidation of this move will be a break below the trendline, which has been acting as a support for the past few weeks.
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This post was last modified on Jul 05, 2023, 11:42 BST 11:42