- Silver sinks from $ 24.85 to $ 24.20 after Powell’s speech.
- Powell confirms the gradual reduction in QE and falling demand for metals.
- XAG / USD remains bullish, with the $ 24.85 resistance area in focus.
Silver futures They have retreated from levels just below the two-month highs at $ 24.87, retreating to the $ 24.20 zone due to the bullish reaction of the US dollar to Powel’s comments.
Metal prices die as Powell confirms QE phasing out
Precious metals were down on Friday, to reveal earlier gains, following comments from Federal Reserve Chairman Powell in a virtual guise. Powell has confirmed the bank’s plan to start reversing bond purchases, but has downplayed the idea of speeding up interest rate hikes.
The market reaction has favored the recovery of the dollar, with the USD index appreciating 0.2% after rebounding from the session lows of 93.50 to the highs of 93.75, while equity markets and precious metals have declined.
XAG / USD: Remains positive, with resistance at $ 24.85 in focus
Technical indicators remain quite positive from a broader perspective, and silver futures are likely to retest the early September highs at $ 24.80. If that level gives way, the pair could take a break before targeting $ 25.20 (Aug 3-4 low) and April high at $ 26.00.
On the downside, immediate support is at 24.10 (Oct 21 low) and below here, trend line support from late September lows, now around $ 23.40, remains positive. . Down here, the bears could gain momentum and carry the pair to $ 23.00 (Oct 18 low) and $ 22.20 / 35 (Oct 6 and 12 lows).