Yesterday’s peak ended a bullish run, spotlighting the Fed’s dovish stance and a softening Dollar, while today, Silver dips slightly amid market caution and geopolitical unrest.
Key Points
- Eyes on economic data and Fed talks for possible shifts in Silver’s trajectory.
- Short-term bearish within a bullish trend; prices well above the 200-day EMA.
- Key supports at 26.410, 26.155, and 25.741, with resistances at 27.237, 27.492, and 27.905 for trading cues.
Silver Daily Price Analysis – 04/04/2024
Yesterday’s trading session saw Silver experiencing a significant upswing, closing at $27.2150 after opening at $26.1476, marking a notable 4.23% increase. This rally concluded with five days of bullish momentum, propelling Silver to a two-year high. The surge in Silver’s price can be attributed to a combination of factors, including the weakening US Dollar driven by dovish sentiments regarding the Federal Reserve’s interest rate trajectory. The market’s anticipation of lower interest rates has historically served as a tailwind for Silver prices, given its status as both an industrial metal and a monetary asset.
However, today’s trading session paints a different picture, with Silver pulling back slightly to a current price of $26.9400 after opening at $27.1055, reflecting a 0.85% decrease. This correction suggests a potential cooling off or consolidation phase following the recent highs, signaling traders’ cautious approach amidst ongoing geopolitical tensions, especially the escalating conflict in the Middle East between Israel and Iran. Such geopolitical uncertainties typically inject volatility into the markets, affecting precious metals like Silver, often seen as safe-haven assets.
All in all, despite the minor pullback today, the medium to long-term outlook for XAG/USD remains bullish.
Key Economic Data and News to Be Released Today
Meanwhile, the market focuses on high-impact economic data releases, which could further influence Silver’s price trajectory. Key indicators such as the US Jobless Claims data released earlier today showed an insignificant impact on silver prices. Several speeches by the Feds slated for later today might bring volatility into the market. And tomorrow, the NFP and unemployment report is scheduled to be released at 13:30 GMT.
Silver Technical Analysis – 04/04/2024
Technical analysis indicates a reaction off the resistance level at $27.24, sparking a short-term bearish sentiment. This pullback, however, occurs within a larger bullish context. The asset’s price remains significantly above the 200-day Exponential Moving Average, suggesting a robust long-term uptrend.
Given these conditions, a strategic pullback could be anticipated. Silver’s recent retreat from resistance suggests that the market may seek a consolidation phase or a slight short-term correction, potentially down to these pivotal areas.
Silver Fibonacci Key Price Levels 04/04/2024
Short-term traders planning to invest in Silver today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 26.410 | 27.237 |
| 26.155 | 27.492 |
| 25.741 | 27.905 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
