After touching Monday’s low of $20.55, the silver price has seen a purchasing interest. The price of Silver has halted a four-day losing streak as investors have shrugged off concerns about the Fed raising interest rates.
Strong wage growth and upbeat consumer spending support higher Fed interest rate expectations in the US economy.
After measuring purchasing activity at $20.55 in the Tokyo session, XAG/USD has recovered. On a larger scale, investors’ attention has switched toward the publication of the United States ISM Manufacturing PMI range on Wednesday. The white metal is now trading between $20.55 and $20.80.
The Federal Reserve (Fed) must tighten monetary policy to attain price stability, which has caused a four-day losing streak in the price of Silver to stall temporarily. The losing streak might, however, go on as US-China geopolitical tensions have not yet subsided.
S&P500 futures have rebounded as investors’ appetite for risk has increased. After a sharp fall from about 105.00, the US Dollar Index (DXY) oscillates around 104.30. While investors have shrugged off hawkish Fed expectations, the US rates are not in the mood to give decrease, which is why the market attitude is becoming favorable. The 10-year US government bond alpha has risen to just around 3.93%.
Strong wage growth and upbeat consumer spending in the US economy bolster the Fed’s expectations of higher interest rates as the fight against persistent inflation intensifies.
Technical analysis of Silver
The hourly chart of the silver price shows a consolidation established in a band of $20.55-20.80 after a sharp vertical decline. The 20-period Exponential Moving Average (EMA), a barrier for the Silver price at $20.65, makes the commodity seem fragile.
The bearish range of 20.00-40.00 is proving difficult for the Relative Strength Index (RSI) (14) to give up.
Hourly Silver Chart