Silver Prices Struggle to Break 200-Day EMA at $21.93
In recent trading, Silver Prices have been battling to crack the 200-day EMA at $21.93. However, the precious metal failed to break this level and retreated toward Tuesday’s levels as the American session progressed.
At the time of writing, XAG/USD is changing hands at $21.62, a dip of over 0.70%. Despite attempts to push higher, the 200-day EMA remains a significant resistance.
Investors are keeping a close eye on Silver Prices, which have been volatile recently. In addition, the ongoing uncertainty in the global economy has increased demand for precious metals as a haven investment.
Market experts are divided on the future of Silver Prices. Some predict the precious metal will continue struggling, while others believe it will rise as investors seek safe assets amidst ongoing economic uncertainty.
XAG/USD Analysis: Consolidating with a Decline Bias
Looking at the daily chart, XAG/USD is currently consolidating in a neutral zone with a decline bias. The precious metal stays below the crucial 200 EMA on the day, indicating a bearish sentiment in the market.
Wednesday’s price movement remains negative, suggesting the downward trend may continue. In addition, the Relative Strength Index (RSI) and Rate of Change (RoC) indicators also show an uptick in bearish momentum.
XAG/USD 4-Hour Chart Analysis: Neutral to Downward Trends
On the 4-hour chart, XAG/USD shows a neutral to downward trend with an intraday bias. Silver is breaching its daily pivot at $21.82, followed by the first support level (S1) at $21.67. A bearish cycle is the most likely outcome if the current trend persists.
The Relative Strength Index (RSI) has dipped below the 50 lines, indicating a sign of going short, while the Rate of Change (RoC) is aggressively dropping. The precious metal’s failure to break the crucial resistance levels has led to a cautious approach from investors, which has impacted the market sentiment.
The ongoing uncertainty in the global economy and the potential for inflation to rise further could lead to increased demand for safe-haven assets, including precious metals. However, the short-term outlook remains bearish.
Potential Price Movements for XAG/USD
Looking at potential price movements for XAG/USD, the first support level would be the S2 point at $21.50. If the precious metal breaches this level, it will expose the S3 pivot at $21.35, followed by the Year-to-Date (YTD) low of $21.18.
In an alternate scenario, if the pair gets back to the 200-day EMA and breaks above it, it could pave the way for a push toward the $22.00 level. However, given the current bearish sentiment in the market, this seems unlikely in the short term.
Impact of FOMC Minutes Release on XAG/USD
Investors should also monitor important news or economic data releases that could impact the precious metal’s performance. For example, releasing the Federal Open Market Committee (FOMC) meeting minutes could significantly impact the XAG/USD pair. This impact is because the FED minutes provide insight into the Fed’s thinking on the current economic situation and any potential policy changes.
If the FOMC minutes suggest that the Fed is considering raising interest rates to combat inflation, it could lead to a stronger US dollar and a decline in precious metal prices. On the other hand, if the Fed indicates that it will adopt an accommodative monetary policy, it could lead to a weaker dollar and potentially higher precious metal prices.