Mon. May 20th, 2024

SILVER PRICE FORECAST: XAG/USD REMAINS SIDEWAYS NEAR $27.60 AS INVESTORS REASSESS FED RATE CUT BETS, 26 April 2024, 16:53

SILVER PRICE ANALYSIS: XAG/USD PLUMMETS AFTER HITTING THREE-YEAR HIGH, STAYS BULLISHSILVER PRICE ANALYSIS: XAG/USD PLUMMETS AFTER HITTING THREE-YEAR HIGH, STAYS BULLISH

Silver price (XAG/USD) remains stuck in a tight range around $27.60 in Friday’s American session.

  • Silver price consolidates around $27.60 as traders reprice Fed rate cut hopes.
  • Sticky US inflation will feed expectations for Fed delaying rate cuts.
  • Investors see the Fed keeping interest rates steady next week.

Silver price (XAG/USD) remains stuck in a tight range around $27.60 in Friday’s American session.

Traders reassess expectations for the Federal Reserve (Fed) rate cuts as the United States core Personal Consumption Expenditure Price Index (PCE) for March remain higher than the consensus.

The annual underlying inflation data rose by 2.7% from the estimates of 2.6% but decelerated from the prior reading of 2.8%.

On a month-on-month basis, price pressures grew in line with expectations and the prior reading of 0.3%.

Silver Price pressures remaining higher fuel expectations for Federal Reserve (Fed) maintaining a hawkish monetary policy framework.

The scenario is favorable for the US Dollar and bond yields but weighs on non-yielding assets, such as Silver.

 The US Dollar Index (DXY) rebounds from 105.40 amid expectations that the Fed will keep interest rates higher for a longer period. The Fed sees rate cuts appropriate only when they get evidence that inflation will return to the desired rate of 2%. 10-year US Treasury yields are down 1.15% to 4.65%.

Meanwhile, investors shift focus to the Fed’s interest rate decision, which will be announced on May 1. The Fed is anticipated to keep interest rates unchanged in the range of 5.25%-5.50%. Though the Fed is expected to maintain the status quo, investors will focus on guidance on interest rates.

Silver technical analysis

Silver price corrects to near March 2022 high near $27.00 after failing to extend upside above the crucial resistance of $30.00. The near-term appeal for Silver seems uncertain as it struggles to sustain near the 20-day Exponential Moving Average (EMA), which trades around $27.20.

The 14-period Relative Strength Index (RSI) shifts into the 40.00-60.00 range from the bullish range of 60.00-80.00, suggesting that the bullish momentum has faded for now.

XAG/USD

Overview
Today last price27.44
Today Daily Change0.01
Today Daily Change %0.04
Today daily open27.43
Trends
Daily SMA2027.46
Daily SMA5025.33
Daily SMA10024.24
Daily SMA20023.76
Levels
Previous Daily High27.58
Previous Daily Low26.98
Previous Weekly High29.02
Previous Weekly Low27.62
Previous Monthly High25.77
Previous Monthly Low22.51
Daily Fibonacci 38.2%27.35
Daily Fibonacci 61.8%27.21
Daily Pivot Point S127.08
Daily Pivot Point S226.74
Daily Pivot Point S326.49
Daily Pivot Point R127.67
Daily Pivot Point R227.92
Daily Pivot Point R328.27

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