- The dollar weakened across the board following the Fed Minutes, which were dovish.
- Mixed US economic data keeps the dollar under pressure.
- XAG/USD Price Analysis: Remains higher after conquering the 200 DMA, targeting $22.00.
the price of silver It retreats after reaching a weekly high of $21.67, after rising strongly on Wednesday, after the release of the Minutes of the November meeting of the Federal Reserve (FED), which weakened the US dollar (USD). Furthermore, factors such as China’s Covid-19 crisis failed to trigger a flight to the safety of the white metal. e XAG/USD is trading at $21.47 a troy ounce.
On Thursday, Wall Street will be closed for the Thanksgiving holiday. Minutes from the latest Federal Reserve meeting showed that “a substantial majority of participants judged that a slowdown in the rate of increase would probably be appropriate soon,” giving investors a green light to seek riskier assets. However, caution is warranted as policymakers expressed “uncertainty” about how far rates should go, after stressing that inflation in the United States (US) remains “too high”.
Turning to the US economic agenda on Wednesday, the S&P Global PMIs saw most indices move into contractionary territory, another headwind for the dollar, while initial jobless claims from the last week they jumped above forecasts, indicating that the labor market is easing.
On the bright side, October durable goods orders rose surprisingly, while November’s University of Michigan (UoM) Consumer Sentiment showed Americans are upbeat about the economy. The University of Michigan survey updated inflation expectations, with a one-year decline of 5%, while for a horizon of 5 to 10 years, they remained unchanged at 3%.
Returning to price action, the Dollar Index (DXY), a gauge of the value of the dollar against its peers, fell 0.21% to 105.875, extending its losses to three days. US Treasury yields, primarily the 10-year Treasury yield, followed suit, falling three basis points to the 3,663% level.
Silver Price Forecast (XAG/USD): Technical Perspective
Although the price of Silver has pulled back from the weekly highs, it remains above the trend-setting 200-day EMA at $21.37, sought as support by buyers of the white metal. XAG/USD bias remains bullish, and could resume its uptrend if buyers recapture $22.00. Given this scenario, the next resistance for XAG/USD would be the November 15 high at $22.24, followed by the June 6 high at $22.51. Otherwise, the first support for XAG/USD would be the 200 day EMA at $21.37, followed by the key psychological level of $21.00.
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.