- Silver is under selling pressure near $23.50 as investors are cautious ahead of Jackson Hole.
- US Stocks found buying interest despite Moody’s and S&P Global downgrading US commercial banks.
- Fed Barkin said the central bank needs to hit the 2% inflation target to ensure its credibility.
The price of the Silver (XAG/USD) it is facing fragile roadblocks around $23.50 after a strong rally early in the New York session. The white metal struggles to prolong the rally as the US dollar bounces after limp. The dollar attracts some betting amid caution ahead of the Jackson Hole Symposium, which begins on Thursday.
The S&P 500 Index is expected to open higher, following positive signals from futures overnight. US Stocks find interest despite Moody’s and S&P Global downgrading the credit ratings of US commercial banks, citing risks of increased outflows in a high interest rate environment. The 10-year US Treasury yield hovers above 4.3%.
The US Dollar Index (DXY) is rallying strongly looking to test immediate resistance at 103.50 as Federal Reserve (Fed) Chairman Jerome Powell is likely to deliver a hawkish speech in Jackson Hole . Fed Powell is expected to keep interest rates higher for a longer period as US inflation pressures are still far from the desired 2% rate.
For his part, Richmond Fed President Thomas Barkin said on Tuesday that the Fed needs to hit the 2% inflation target to ensure its credibility, according to Reuters. Fed Barkin expects the US recession to be “less severe.”
Silver Technical Analysis
Silver price finds intermediate resistance after a strong rally to approach the 38.2% Fibonacci retracement (traced from the Jul 20 high of $25.27 to the Aug 15 low of $22.23) at $23.40. The pair rises above the 20 period EMA, which is trading around $23.20.
The Relative Strength Index (RSI) (14) rises to the 60.00-80.00 bullish range, indicating more upside ahead.
XAG Hourly Chart
-638283088949194721.png)
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
