Silver Holds In Bearish Territory Below Psychological Level Of $ 23
- Silver bears remain at the top in a key week for the US dollar.
- Commodities will be the center of attention as the Fed is expected to cause volatility.
Silver prices are slightly lower in Asia despite the greenback’s offer.
At the time of writing, XAG / USD is trading at $ 23.01 and down 0.03%.
Silver was down nearly 1% at the close of the game on Friday, going from a high of $ 23.32 to a low of $ 22.87.
The DXY dollar index, which measures the US currency against six rivals, hit 93.734 for the first time since early November, before trading down 0.1% to 93.491.
The dollar’s message to the market is bullish given the ground it has made through monthly resistance near 93.50. For the week, it posted a gain of 1%, the most in two months.
Meanwhile, markets are eagerly awaiting the weekend’s Jackson Hole showdown where some are expecting a cutback announcement.
In addition, the delta variant is also a risk for industrial metals and slower growth would reduce industrial demand for silver.
Additionally, bullish for the greenback, a possible decrease is expected to slow the growth of the money supply, which is a key driver of demand for all collectibles, including silver coins that have fueled retail demand. ingots.
Silver technical analysis
A breakout of the current support opens the risks of further downside.
Silver has already crossed bearish territory below the smoothed 200 day moving average and bears may target a -272% Fibo retracement of the correction to 21.57.
However, if the price goes up and the bulls break the resistance of the dynamic trendline, then the Fibo target at 61.% Is protecting the structural resistance at 25.50 / 00.