Select Language

Silver Price Forecast: XAG/USD finds support near $29.70 as US Dollar gives up some intraday gains

Breaking news

Silver Price Forecast: XAG/USD finds support near $29.70 as US Dollar gives up some intraday gains

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.11.14 23:48
Silver Price Forecast: XAG/USD finds support near $29.70 as US Dollar gives up some intraday gains

update 2024.11.14 23:48

  • Silver price gauges an interim cushion near $29.70, more downside looks likely.
  • The US Dollar's rally stalls after the release of the US jobless claims and the PPI data.
  • A firm outlook on Trump's policies will keep the Silver price edgy.

Silver price (XAG/USD) discovers a temporary support near $29.70 in Thursday's North American session. The white metal finds cushion as the US Dollar (USD) gives up some intraday gains after posting a fresh annual high. The rally in the US Dollar index (DXY), which gauges Greenback's value against six major currencies, pauses for a while after jumping to near 107.00.

The Greenback faces mild pressure after the release of the US Initial Jobless Claims for the week ending November 8 and the Producer Price Index (PPI) data for October even though the data was USD-positive. Individuals claiming jobless benefits for the first time came in surprisingly lower at 217K than the prior release of 221K, which was expected at 223K.

The headline producer inflation data accelerated to 2.4%, faster than estimates of 2.3% and the September reading of 1.9%. In the same period, the core PPI - which strips off volatile food and energy prices rose by 3.1% than estimates of 3% and the former release of 2.9%. Historically, signs of acceleration in price pressures weigh on market expectations for Federal Reserve (Fed) interest rate cuts, however, the impact is expected to negligible as officials are more worried about stabilizing job market.

For more interest rate cues, investors await Fed Chair Jerome Powell's speech, which is scheduled at 20:00 GMT.

Meanwhile, the outlook of the Silver price is expected to remain vulnerable as policies of President-elected Donald Trump could limit the Fed's potential of cutting interest rates aggressively.

Silver technical analysis

Silver price stays on track toward the upward-sloping trendline around $29.00, plotted from the February 28 low of $22.30. The white metal weakened after the breakdown of the horizontal support plotted from the May 21 high of $32.50.

The near-term trend of the Silver price has weakened as the 20-day Exponential Moving Average (EMA) starts declining, which trades around $32.00.

The 14-day Relative Strength Index (RSI) slides to near 40.00. A bearish momentum will trigger if the RSI (14) sustains below the same.

Silver daily chart

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply - Silver is much more abundant than Gold - and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals - more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers' demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

 


Date

Created

 : 2024.11.14

Update

Last updated

 : 2024.11.14

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

NZD/JPY Price Analysis: Pair stuck in range, moves sideways

The NZD/JPY pair declined mildly to 91.40 on Thursday's session and continued trading within the range of 92.00-91.00.
New
update2024.11.15 06:34

Gold price consolidates amid strong US Dollar, robust PPI data

Gold recovers some ground on Thursday yet remains trading below its opening price for the fifth consecutive day, undermined by the Greenback's advance for its own fifth consecutive day.
New
update2024.11.15 05:36

Australian Dollar declines on weak labor data, US Dollar hits yearly high

The AUD/USD declined by 0.34% to 0.6470 in Thursday's session, extending its decline to a fresh three-month low of 0.6460.
New
update2024.11.15 05:00

Forex Today: Attention is back to the real economy

The US Dollar continued its ascent, reaching fresh 2024 highs, even as the Trump-led rally showed signs of slowing and US yields dipped slightly ahead of a busy economic calendar on Friday.
New
update2024.11.15 04:41

Banxico lower rates by 25 basis points, signals further easing

The Bank of Mexico cut rates by 25 basis points for the fourth time since March 21, diminishing Mexico's primary reference rate from 10.50% to 10.25%.
New
update2024.11.15 04:26

Powell speech grabs attention in the American afternoon, focus on Trump

Federal Reserve (Fed) Chairman Jerome Powell is due to participate in a panel discussion titled "Global Perspectives" at an event hosted by the Federal Reserve Bank of Dallas this Thursday, and speculative interest eagerly awaits his words.
New
update2024.11.15 03:30

Dow Jones Industrial Average cools as post-election rally chills

The Dow Jones Industrial Average (DJIA) pumped the brakes on the recent post-election rally that saw a decisive win for presidential candidate and former President Donald Trump.
New
update2024.11.15 03:23

US Dollar softens after reaching yearly high on Dollar Index

The US Dollar Index (DXY), a measure of the value of the USD against a basket of six currencies, softened after hitting a fresh year-to-date high near 107.00.
New
update2024.11.15 03:20

Mexican Peso steadies ahead of Banxico's rate decision amid hot US inflation data

The Mexican Peso wavers against the US Dollar on Thursday after snapping three days of losses on Wednesday.
New
update2024.11.15 02:34

EUR/GBP Price Analysis: Bearish respite, indicators remain negative

The EUR/GBP pair rose to 0.8320 in Thursday's session. Despite a temporary respite for the bears after recent declines, technical indicators remain deeply negative, with the pair trading below the 20-day Simple Moving Average (SMA) which stands around 0.8340.
New
update2024.11.15 00:52

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel