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XAG / USD stable around $ 22.38

  • Silver rises for the second day in a row, gaining 0.72%.
  • Goldman Sachs and Deutsche Bank estimate four rate hikes in 2022, while JP Morgan brought its first hike up to March.
  • The XAG / USD is biased to the downside as the 50 DMA crossed below the 100 DMA, prompting a $ 1.00 drop.

La plata (XAG / USD) it advances during the American session, despite the fact that the dollar rose steadily in the session, trading at $ 22.47 at the time of writing this article. Risk appetite conditions remained subdued since the European session, driven by expectations of higher rates as investors assess the latest US employment report.In addition, Goldman Sachs revealed that they expect four rate hikes. of the Federal Reserve.

Some commercial banks expect four hikes from the Fed in the year

In the European session, a report emerged that Goldman Sachs, the North American investment bank, expects four hikes in the Federal Funds Rate. Furthermore, the bank noted that the US central bank would begin to reduce its balance sheet in July 2022, if not earlier.

On Friday, JP Morgan brought forward the first June rate hike to the March 2022 meeting. Meanwhile, Deutsche Bank said it expects four increases in the federal funds rate (FFR) after the nonfarm payroll report.

Last week, minutes from the December FOMC meeting revealed that the Federal Reserve is poised to raise rates and discussed the possibility of lowering its $ 8 trillion balance sheet that could begin as soon as the US central bank. start raising rates.

Meanwhile, in the bond market, the US 10-year yield is up nearly two basis points to 1.789%, a tailwind for the US dollar index, which is up 0.40%, to 96.15 at the time of the publication.

Market participants’ attention turns to US inflation data and Federal Reserve lawmaker Jerome Powell and Lael Brainard’s testimony against the US Senate Banking Commission this week for more. clues about the speed of monetary policy normalization.

XAG / USD Price Forecast: Technical Outlook

XAG silver has a neutral bias to the downside. The 50-day moving average (DMA) crossed below the 100 DMA on January 5, a bearish signal that propelled the white metal from $ 23.25 to $ 22.00, a loss of $ 1.00.

On the downside, the first support for XAG / USD would be the Jan 7 daily low at $ 21.96. A breakout of the latter exposes on October 20, 2021, a daily low of $ 21.83, followed by the December 15, 2021 low at $ 21.43.

Technical levels

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