- Spot silver has rallied above the $ 26.00 level ahead of key risk events later in the week.
- Precious metals markets could be volatile amid the release of US retail sales on Tuesday and the FOMC on Wednesday.
Silver Spot Prices (XAG / USD) The Vanguard operates Monday at the start of US trading, with spot prices currently up more than 1.0% on the day or trading around 30 cents in profit. Subsequently, silver prices have managed to regain the $ 26.00 level and are now trading at $ 26.20, as the gaze moves towards last week’s highs modestly above $ 26.40; Keep in mind that the 21-day moving average is also around this level, a key area of ​​resistance. A break above this resistance could open the door for a move towards the 50-day moving average below $ 26.70.
Performance of the day
US government bond yields are experiencing a slight pullback early in the week; 10-year yields are down 2 basis points below 1.62% and 30-year yields are down more than 3 basis points to less than 2.37%; note that these are still very high levels, but there is likely some earning activity to support the bonds. prices (and pushing yields lower) after last Friday’s bond market sell-off. The lower yields appear to be supporting precious metals or at least protecting them from the negative impact of a slightly stronger US dollar.
In terms of why bond yields are a little lower and the dollar a little stronger; There have been no major fundamental developments over the weekend, or at least nothing big enough for the markets to really move at the start of the week. As such, there is a sense of indecision to trade on Monday and given the lack of key events on the calendar, the markets are likely to remain in range for the remainder of the session.
Things are set to improve starting Tuesday with the release of US retail sales figures for February and then the FOMC rate decision on Wednesday. As always, the US dollar and US government bond markets are expected to become rocky from these events; Your reaction is likely to influence price action in the silver (and gold) markets, with any outcome causing the dollar to drop and yielding the highest return. likely to benefit precious metals (and vice versa).
Technical levels
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