- Spot silver rose even higher on Wednesday despite a stronger US dollar, likely as a result of profit-taking.
- XAG / USD prices bounced off $ 25.00 and are currently trading almost 5.0% lower for the week.
Despite an ongoing recovery in the US dollar’s fortunes on Wednesday, silver spot prices (XAG / USD) they hold up pretty well. The precious metal found a fairly decent support at the $ 25.00 level, which has been an important area of ​​support this month. Given that the XAG / USD had plunged nearly 5.0% since the start of the week when prices hit the $ 25.00 level during the Asia Pacific session, it is perhaps not surprising to see the selloff lose some momentum as that silver traders post some gains on their short positions. Currently, silver spot prices are up about 0.6% or about 15 cents on the session. The markets do not appear to have given much credence to US durable goods orders or recently released PMI data, although they are still worth mentioning.
US data
The US data has focused on the last two hours; The durable goods orders report for February (released at 12:30 GMT) was much worse than expected, with month-on-month order growth falling 1.1% versus forecasts for a 0.8% increase and major orders a 0.9% versus forecasts for a 0.6% increase. So far, the specifics for February have been much softer than expected (remember that retail sales and industrial production also disappointed expectations). Wells Fargo attributes bad weather last month as a contributing factor to Wednesday’s disappointing durable goods data, but sees supply chain bottlenecks, which are restricting new orders, as a key problem. However, the bank still expects a strong rebound in business spending this year.
On the other hand, the US PMI Markit preliminary survey has been released and was very robust as expected; the manufacturing index rose modestly to 59.0 from 58.6 last month and the services index was in line with expectations at 60.0, an 80-month high, according to Markit. According to IHS Markit Chief Economist Chris Williamson, “Another impressive expansion in business activity in March ended the economy’s strongest quarter since 2014. The launch of the vaccine, the reopening of the economy and an additional stimulus of 1.9 Trillions of dollars helped drive demand to a degree not seen in more than six years, driving growth in orders for goods and services to multi-year highs. ” However, Chris adds, “Producers were increasingly unable to keep up with demand, mainly due to disruptions and delays in the supply chain. There have been higher prices, with inflation rates of the cost of inputs and of the sale price well above anything seen previously in the history of the survey. “
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
