- Silver price clings to $20.00 despite market risk appetite.
- Upbeat US non-manufacturing PMI data kept investors spirited, who believe the US could dodge a recession.
- Federal Reserve officials stressed their commitment to reduce inflation.
silver prices they are pushing against $20, after falling on Tuesday due to the appreciation of the US dollar amid a gloomy market mood, spurred by geopolitical tensions between the US and China. However, on Wednesday, the white metal rises again, although it is facing solid resistance at the 50 day EMA which remains around $20.43. At the time of writing, XAGUSD is trading at $20.00.
Silver Rebounds as US Bond Yields Pull Back from Daily Highs
Sentiment improved throughout the day. US stocks rise on corporate earnings, while safe-haven assets, in particular precious metals, take a breather, recovering from earlier losses, as US Treasury yields rose. remain elevated on Fed comments.
Meanwhile, US economic data, with the non-manufacturing PMI for July, showed that businesses are holding up as the index rose to 56.7, higher than estimated and higher than June’s 55.9. This lowers expectations of a recessionary scenario, which were raised as the ISM Manufacturing PMI expanded at its slowest pace in two years.
Aside from this, the Fed parade continued. Earlier in the day, St. Louis Fed President Bullard said he wants rates to be around 3.75-4.00% by the end of the year. He added that the Fed “is going to bring inflation back to 2% over time.” Later, the San Francisco Fed, Daly, said he is open to raising rates by 50 or 75 basis points, but that would depend on inflation data.
The dollar’s reaction to the above factors has been positive, as shown by the dollar index, which rose 0.14% to 106.483. Of late, US Treasury yields are pulling back from daily highs, one of the reasons silver prices are recovering, with the 10-year bond rate at 2,763%, almost lateralized.
What must be considered
Jobs data, led by initial jobless claims, will be released on the US economic docket on Thursday, along with other data from the Federal Reserve. Next, silver traders will focus on Friday’s Non-Farm Payrolls report.
Silver (XAGUSD) – Key Technical Levels
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.
