XAU / USD traders wait for the Fed
- Silver is holding bullish territory but is vulnerable.
- All attention is on the Fed for the days to come.
The price of silver is trading early in Asia after a semi-bearish close on Wall Street. XAG / USD was down around 0.27% at the close of the US session but outperformed gold. The gold / silver ratio fell 0.36%.
Traders are now eagerly awaiting the Federal Open Market Committee which will meet on Tuesday. A statement followed by Fed Chairman Jerome Powell speaking to a press will be what to watch out for.
The Fed Powell will be expected to say that the most likely course is for inflation to decelerate over the next few months, returning to more normal levels later this year. Therefore, the transitional mantra should contain the US dollar and help support a rally in precious metal prices. On the other hand, if there are upward revisions to PCE inflation in 2021, this could translate into a more sustained rise in inflation over the medium term. It would be more hawkish than the market price.
Silver technical analysis
A spike in the greenback will expose the vulnerability of the 27 number and previous daily lows that correspond to the bullish 10-day moving average.