Welcome to the World of Silver Trading: A Comprehensive Analysis
Silver Price Analysis
- Silver price trades sideways below $32.00 as investors seek fresh cues about the Fed’s likely monetary policy action in November and December.
- The US Dollar strengthens after better-than-expected US Retail Sales growth and lower jobless claims.
- Rising US Trump’s odds of winning presidential elections improve the Silver price’s appeal as a safe haven.
In Thursday’s North American session, the Silver price (XAG/USD) is trading in a tight range below the key resistance of $32.00. The white metal consolidates as investors look for fresh cues about the Federal Reserve’s (Fed) likely interest rate action in the remaining year.
The CME FedWatch tool indicates that the central bank is expected to cut interest rates by 25 basis points (bps) in both policy meetings in November and December.
On the other hand, upbeat United States (US) monthly Retail Sales and lower Initial Jobless Claims for the week ending October 11 have strengthened the US Dollar (USD). The US Dollar Index (DXY) has reached a fresh 10-month high at 103.85.
The Retail Sales data, a key measure of consumer spending, rose by 0.4%, surpassing estimates of 0.3% and the previous release of 0.1%. Additionally, the number of individuals claiming jobless benefits for the first time came in lower at 241K, compared to estimates of 260K.
With 10-year US Treasury yields soaring to 4.08%, the opportunity cost of holding non-yielding assets like Silver increases. However, the Silver price remains supported as growing speculation about former President US Donald Trump winning the upcoming presidential elections has improved its appeal as a safe-haven asset.
Silver Technical Analysis
The Silver price is aiming to reclaim the decade-high of $33.00. The upward-sloping 20- and 50- Exponential Moving Averages (EMAs) near $31.20 and $30.45, respectively, indicate a strong uptrend.
The 14-day Relative Strength Index (RSI) is approaching 60.00. A decisive break above this level would activate a bullish momentum.
Silver Daily Chart
Silver FAQs
Here are some frequently asked questions about Silver:
- What is Silver?
- What factors influence Silver prices?
- How is Silver used in industry?
- How do Silver prices relate to Gold?
For answers to these questions and more, refer to the detailed information provided in the FAQs section below:
Analysis:
The Silver market is currently experiencing a period of consolidation as investors await clarity on the Federal Reserve’s interest rate decisions. The recent strengthening of the US Dollar has put pressure on Silver prices, but the metal’s appeal as a safe-haven asset remains intact due to uncertainties surrounding the US presidential elections.
From a technical perspective, Silver is showing signs of a strong uptrend, with key moving averages and the RSI pointing towards bullish momentum. However, the market remains sensitive to external factors such as economic data releases and geopolitical events.
Understanding the dynamics of the Silver market, including factors that influence prices and its role in various industries, is crucial for investors looking to diversify their portfolios and hedge against market volatility. Keeping a close eye on key indicators and market trends will help investors make informed decisions and navigate the ever-changing landscape of the precious metals market.