Published on May 8, 2023

Daily Analysis For Silver (XAG/USD) 08-05-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) BoJ Monetary Policy Meeting Minutes	Medium	JPY
01:00	(France) Victory in Europe Day	None	EUR
01:00	(United Kingdom) Bank Holiday for the coronation of King Charles III	None	GBP
01:30	(Japan) Jibun Bank Services PMI	Medium	JPY
01:30	(Japan) Jibun Bank Composite PMI	Low	JPY
02:30	(Australia) Building Permits MoM	Medium	AUD
02:30	(Australia) Private House Approvals MoM	Low	AUD
02:30	(Australia) Building Permits YoY	Low	AUD
02:30	(Australia) NAB Business Confidence	High	AUD
06:00	(Estonia) Inflation Rate YoY	Low	EUR
06:00	(Estonia) Inflation Rate MoM	Low	EUR
06:00	(Estonia) CPI	Low	EUR
07:00	(Finland) Balance of Trade	Low	EUR
07:00	(Germany) Industrial Production MoM	Medium	EUR
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Greece) Balance of Trade	Low	EUR
10:30	(Germany) 3-Month Bubill Auction	Low	EUR
11:00	(Spain) Consumer Confidence	Medium	EUR
11:00	(Latvia) Industrial Production MoM	Low	EUR
11:00	(Latvia) Industrial Production YoY	Low	EUR
15:00	(El Salvador) Inflation Rate YoY	Low	USD
15:00	(El Salvador) Inflation Rate MoM	Low	USD
15:00	(United States) Wholesale Inventories MoM	Low	USD
16:00	(United States) Consumer Inflation Expectations	Low	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
23:45	(New Zealand) Electronic Retail Card Spending MoM	Low	NZD
23:45	(New Zealand) Electronic Retail Card Spending YoY	Low	NZD

Today's Scenario: - The price of silver has retreated after reaching a new 12-month high of $26.13 during the New York session. This was due to an improvement in the US labor market, as indicated by an upbeat US jobs report, which overshadowed the chances of XAG testing last year's high. As of writing, the XAG/USD is trading at $25.60, down 1.69%.

Buy Scenario: - The price of silver (XAG/USD) is trading slightly lower at around $25.65 during Monday's Asian session after experiencing a decline in the previous day's trading. Silver saw its biggest drop in three weeks as it reversed from its highest level since April 2022.

The drop resulted in a break of a one-week-old ascending trend line, which favored bears. However, the 200-hour moving average (HMA) at around $25.20 supported the commodity's rebound.

It's worth noting that the MACD signals no longer show a bearish bias, and therefore, the recovery of silver from the 200-HMA could aim for $26.00.

However, a convergence of the previous support line from May 2nd and a three-week-old horizontal area near $26.10 could pose a challenge for bulls after that.

If the price manages to break above this resistance area, then the highs from April and March 2022 around $26.22 and $26.95 respectively could be targeted. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - On the other hand, if the price drops below the 200-HMA at $25.20, it could revisit the $25.00 round figure before testing multiple supports around the $24.60-50 area.

Overall, despite the recent retreat in silver's price, it remains on the bull's radar. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -