- Silver finds stabilization after a sell-off near $24.00 amid strength in the Dollar.
- The US core PCE price index rose 0.2% in June, as expected by market participants.
- The price of Silver offers a breakout of the double top pattern formed above $25.00.
The price of silver (XAG/USD) it remains above the crucial support of $24.00 in the American session. The white metal struggles to find direction as investors need strong signals on September monetary policy from the Federal Reserve (Fed) as policymakers took incoming data into account for further action. .
The S&P 500 Index opens higher as fears of a US recession have eased considerably. Given the stellar performance of the US economy in the April-June quarter and comments from Fed officials that they do not expect a recession due to the tight labor market, investors are finding strength to pump money into equities. US.
US Dollar Index (DXY) rebounds strongly after correcting to near 101.40 as weak Personal Consumption Expenditure (PCE) price index data fails to offset the impact of upbeat Gross Domestic Product (GDP) data ).
The US core PCE price index rose 0.2% in June, as expected by market participants, but remained below the 0.3% recorded in May. In annualized terms, the Federal Reserve’s (Fed) inflation tool of choice eased sharply to 4.1%, versus expectations of 4.2% and previous release of 4.6%.
XAG technical analysis
The price of silver offers a breakout of the double top chart pattern formed above $25.00 on a two hour scale. The aforementioned pattern was triggered after falling below the July 24 low of $24.27 and has triggered a bearish reversal. The 20 period EMA at $24.40 is acting as a battle for silver bulls.
The Relative Strength Index (RSI) (14) has drifted towards the bearish range of 20.00-40.00, indicating that bearish momentum is active.
Two-hour XAG chart
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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.
