- Metals stabilized after a sharp decline, the DXY reaching monthly highs above 94.00.
- The strong US dollar keeps metals under pressure ahead of next week’s FOMC meeting.
- XAG / USD falls for the fourth day, but moves away from lows.
Silver and gold they are falling drastically on Friday. A rally in the US dollar pushed XAG / USD to $ 23.68, the lowest level in a week. During the last hours, silver regained ground and rose to $ 23.90. The week is about to end lower, after finding resistance at the 20-week moving average around $ 24.40.
DXY rose 0.90% on Friday, trading at a monthly high of 94.20, boosted amid end-of-month flows and ahead of next week’s FOMC meeting. The Federal Reserve is expected to announce a reduction in its QE program. The latest round of economic data, including today’s Core CPE, did not alter market expectations.
US stocks are modestly higher. Not even risk appetite is preventing the dollar’s rally. For metals, a pullback in US yields favored a consolidation.
The bias on the daily chart in XAG / USD still shows some bullish arguments, with the price above the key moving averages. The movement of the lows on Friday is another fact. Silver now needs to initially rally $ 24.25 to gain momentum, then break through the key $ 24.75 resistance to clear the way for further gains. A drop below $ 23.50 on the other hand would increase the negative pressure.
Silver daily chart
Technical levels
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