XAG / USD tests the $ 27.00 level as retail demand fades

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  • Silver spot prices (XAG / USD) have been firmly on the defensive Tuesday as retail interest wanes.
  • Spot prices are currently testing the $ 27.00 level.

Silver Spot Prices (XAG / USD) they have been firmly on the defensive Tuesday as the recent surge in retail interest in the precious metal fades; The prices of the XAG / USD They have fallen from the levels touched in the Asian session around $ 28.50 to test the $ 27.00 level and are down slightly by almost 7% on the day. On the week, silver has lost 0.5%, although the precious metal is still up 7% from last Thursday.

HSBC analyst James Steel argues that another factor weighing on silver could be the fact that over the past few days, gold has not made comparable gains; the current gold / silver ratio is “well below historical averages, and investors may recognize that this level is too far from historical norms,” ​​he said.

Looking ahead, silver price action has, of course, been much more focused on retail investment history this week and hasn’t seemed to pay much attention to market fundamentals. But the US dollar has been firmly in the lead amid strong US data (notably the strong ISM manufacturing PMI on Monday) and the dollar index has now broken above 91.00. If the index continues to rally on the back of strong new US data (Thursday’s ISM Services PMI and Friday’s official labor market report are the two key releases to watch), this is likely to be a headwind for silver, given its typically negative correlation with the dollar.

Technical levels

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