- The price of silver starts the week on the right foot, rising 0.30%.
- Europe’s energy crises deepen as G7 ministers cap Russian oil prices while Russia halts gas exports.
- US real yields remain above the 0.70% threshold, but nearly ten basis points off daily highs.
the price of silver regained some composure advancing more than 0.50% on Monday, despite thin liquidity, with US markets closed for Labor Day. Meanwhile, the common bloc’s energy crisis is aggravated by Gazprom cutting off gas supplies to Europe in retaliation after a G7 meeting put a cap on Russian oil. At the time of this writing, the XAG/USD It is trading at $18.08, above its opening price.
Global stocks are trading in the red, reflecting the deteriorating market. Last week, US jobs data, with non-farm payrolls beating expectations, downward revisions, and the unemployment rate rising by 3.7%, lowered the odds of an aggressive Federal Reserve .
The dollar index updated 20-year highs around $110.27, sending the EUR/USD pair down below 0.9900, although the white metal was down but above its opening price. The US 10-year TIPS, a proxy for real yields, which measures the 10-year nominal yield minus inflation expectations, remains positive, but far from daily highs around 0.827%, and currently at 0.729%, a tailwind for XAG/USD.
What must be considered
The US agenda will feature speakers from the Fed, with Cleveland President Loretta Mester on Wednesday and Jerome Powell speaking on Thursday. Additionally, jobless claims for the week ending September 2, along with the S&P Global and ISM Services PMI, will be watched by investors, looking for clues about the state of the US economy.
Silver (XAG/USD) Price Forecast: Technical Outlook
XAG/USD continues to have a neutral or bearish bias, despite the recent jump from the year low of $17.56. However, a break above the July 14 low at $18.14 is needed to open the door for a retest of the 20-50 DMA confluence around $19.25-40. Otherwise, a resumption to the downside and a further attempt to break below last year’s low on its way to the June 2020 lows at $16.95 is expected.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
