- Silver price volatility compresses near $23.00, while the US Dollar remains subdued.
- Investors are baffled between rising hopes for a soft landing from the Federal Reserve (Fed) and the resistance of the US dollar.
- Silver price consolidates below the 61.8% Fibonacci retracement at $23.30.
Silver (XAG/USD) shows a volatility stranglehold near the crucial $23.00 support, tracking the US dollar’s moderation. The white metal is struggling to find direction as investors remain bewildered between rising hopes for a soft landing from the Federal Reserve (Fed) and the resistance of the US dollar due to deepening global uncertainties.
The S&P 500 opens on a positive note as investors begin to digest fears of a global economic shock due to central banks raising interest rates. The Dollar Index (DXY) is moving sideways around 105.00 after a strong recovery. The hope that the US economy is approaching the golden path continues to favor increases.
The president of the Chicago Fed, Austan Goolsbee, has stated that the central bank intends to lead the economy to a “golden path”, that is, to a situation in which inflation recedes without triggering a recession. Although strong wage growth remains a major concern for the Fed, as rising disposable income could raise inflationary pressures.
Meanwhile, investors await US Consumer Price Index (CPI) data for August, which will be released on Wednesday at 12:30. Investors will be keeping a close eye on core inflation data as it has remained very firm due to strong momentum in consumer spending.
XAG Technical Analysis
Silver price consolidates below the 61.8% Fibonacci retracement (traced from the August 15 low of $22.23 to the August 30 high of $25.00) at $23.30 on an hourly basis. The 50-period EMA at $23.13 continues to act as a roadblock for silver price bulls.
The Relative Strength Index (RSI) (14) is moving towards the 40.00-60.00 range from the bearish 20.00-40.00 range, indicating that the bearish momentum has faded. However, the bearish trend has not yet moderated.
La Plata hourly chart
|Latest price today||23.1|
|Today Daily Change||0.14|
|Today’s daily variation||0.61|
|Today’s daily opening||22.96|
|Previous daily high||23.19|
|Previous daily low||22.83|
|Previous weekly high||25.02|
|Previous weekly low||24.05|
|Previous Monthly High||25.02|
|Previous monthly low||22.23|
|Daily Fibonacci 38.2||22.97|
|Fibonacci 61.8% daily||23.05|
|Daily Pivot Point S1||22.8|
|Daily Pivot Point S2||22.64|
|Daily Pivot Point S3||22.44|
|Daily Pivot Point R1||23.16|
|Daily Pivot Point R2||23.35|
|Daily Pivot Point R3||23.51|
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.