- Silver price trades sideways above $23.00 ahead of Fed Powell speech.
- Market sentiment has improved in the absence of new developments in the war between Israel and Palestine.
- The price of Silver shows a sideways behavior in the middle of a symmetrical triangle graphic formation.
The price of the Silver (XAG/USD) It moves back and forth in a tight range above the crucial $23.00 support in the latter part of the European session. The white metal struggles to find direction as investors look for new developments on Middle East tensions and await Federal Reserve (Fed) Chairman Jerome Powell’s speech scheduled for Wednesday.
The S&P 500 is expected to open the week on a positive note amid an environment of risk appetite. Investors began to digest the tensions between Israel and Palestine in the absence of a new escalation by Israeli troops. The Israel Defense Forces (IDF) ground invasion plan has been delayed by the progress of hostage negotiations.
The US Dollar Index (DXY) is looking for intermediate support near 105.00 after facing intensified selling. Stable labor demand and wage growth data released on Friday indicate that tense labor market conditions have begun to ease. This has raised expectations that the Fed will not raise interest rates further.
Meanwhile, Barclays expects the Fed to raise interest rates in January instead of November. Economists at Barclays said: “We continue to think the FOMC (Federal Open Market Committee) will have to proceed with additional tightening and will have to maintain a higher rate path than the market expects, with no rate cut before September 2024”.
Silver technical analysis
The price of silver is showing sideways behavior amidst a symmetrical triangle chart formation on a two-hour scale. The aforementioned chart patterns signal a sharp contraction in volatility. The 200-period exponential moving average (EMA) at $22.85 continues to provide support to silver price bulls.
The Relative Strength Index (RSI) (14) is oscillating in the range of 40.00-60.00, indicating that investors are awaiting a possible trigger.
XAG 2-hour 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.
