Market attention is now on the upcoming FOMC meeting minutes and Jerome Powell’s speech at Jackson Hole, which could influence silver prices.
Key Points
- Silver surged 2.38% last Friday, driven by expectations of a dovish Federal Reserve and easing inflation.
- On Monday, silver prices slightly declined by 0.23% due to positive market sentiment, reducing immediate demand for safe-haven assets.
- Technical analysis suggests silver might see a pullback towards $28.53, but a break above $29.07 could resume the upward trend.
Silver Daily Price Analysis – 19/08/2024
Silver (XAG/USD) experienced a strong upward movement on Friday, closing at $29.004 after opening at $28.332, marking a solid gain of 2.38%. This bullish momentum was largely driven by expectations of a dovish stance from the Federal Reserve, with recent economic data suggesting a slowdown in inflation.
The Producer Price Index (PPI) and Consumer Price Index (CPI) reports have fueled speculation that the Fed may implement a 25-basis-point rate cut in September, weakening the U.S. dollar and thereby boosting silver prices. Additionally, geopolitical tensions, particularly in the Middle East and the ongoing Russia-Ukraine conflict, contributed to increased demand for silver as a safe-haven asset.
As of today, silver prices have slightly declined, with the current price hovering around $28.93 after opening at $29.004, reflecting a minor decrease of 0.23%. This dip is largely attributed to positive market sentiment, which has reduced the immediate demand for safe-haven assets like silver. However, this decline might be temporary, as market participants are cautious ahead of the upcoming Federal Reserve events.
Key Economic Data and News to Be Released Today
Market focus is now shifting towards the release of the FOMC meeting minutes and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium later this week. These events are expected to provide more clarity on the Fed’s monetary policy direction. The anticipation of dovish commentary could potentially lead to renewed buying interest in silver, especially if there are indications of further monetary easing.
Additionally, geopolitical risks, including the ongoing tensions in the Middle East and the Russia-Ukraine war, remain key factors that could support silver prices in the near term. If these conflicts escalate, the demand for silver as a safe haven may increase, potentially offsetting any downward pressure from positive economic data.
Silver Technical Analysis – 19/08/2024
Silver is currently in a consolidation phase following a strong upward movement. The price has encountered resistance near the $29.07 level, and this area is acting as a short-term barrier to further upside gains. The price is trading near the pivot point at $28.69, which suggests that the market is trying to decide its next move.
The fact that the price is trading above the 200 EMA indicates that the overall trend remains bullish. However, the distance between the current price and the 200 EMA suggests that the asset could see a pullback towards this moving average if the upward momentum weakens.
In the short term, the market might see a pullback towards the 200 EMA at $28.53, especially if the RSI continues to move lower. However, if the price manages to stay above the pivot point at $28.69 and break above the $29.07 resistance, it could signal a resumption of the upward trend.
Silver Fibonacci Key Price Levels 19/08/2024
Short-term traders planning to trade XAG/USD today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 28.318 | 29.071 |
| 28.086 | 29.303 |
| 27.709 | 29.679 |
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.
