Published on Apr 12, 2023

Daily Analysis For Silver (XAG/USD) 12-04-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
00:30	(United States) Fed Kashkari Speech	Medium	USD
00:50	(Japan) Bank Lending YoY	Low	JPY
00:50	(Japan) PPI YoY	Low	JPY
00:50	(Japan) PPI MoM	Low	JPY
00:50	(Japan) Machinery Orders MoM	Medium	JPY
00:50	(Japan) Machinery Orders YoY	Medium	JPY
02:30	(Australia) Building Permits MoM	Low	AUD
02:30	(Australia) Private House Approvals MoM	Low	AUD
02:30	(Australia) Building Permits YoY	Low	AUD
05:30	(Netherlands) Balance of Trade	Low	EUR
05:45	(Australia) RBA Bullock Speech	Medium	AUD
06:00	(Finland) Current Account	Low	EUR
07:00	(Lithuania) PPI YoY	Low	EUR
07:00	(Lithuania) PPI MoM	Low	EUR
08:00	(Slovakia) Construction Output YoY	Low	EUR
10:00	(United Kingdom) 6-Year Index-Linked Treasury Gilt Auction	Low	GBP
10:10	(Italy) 12-Month BOT Auction	Low	EUR
10:10	(Italy) 4-Month BOT Auction	Low	EUR
10:30	(Germany) 30-Year Bund Auction	Low	EUR
11:00	(Latvia) CPI	Low	EUR
11:00	(Latvia) Inflation Rate YoY	Low	EUR
11:00	(Latvia) Inflation Rate MoM	Low	EUR
12:00	(United States) MBA 30-Year Mortgage Rate	Medium	USD
12:00	(United States) MBA Mortgage Applications	Low	USD
12:00	(United States) MBA Mortgage Market Index	Low	USD
12:00	(United States) MBA Mortgage Refinance Index	Low	USD
12:00	(United States) MBA Purchase Index	Low	USD
13:30	(United States) Inflation Rate MoM	Medium	USD
13:30	(United States) Core Inflation Rate MoM	Medium	USD
13:30	(United States) Core Inflation Rate YoY	High	USD
13:30	(United States) Inflation Rate YoY	High	USD
13:30	(United States) CPI	High	USD
13:30	(United States) CPI s.a	High	USD
13:30	(Euro Area) ECB Guindos Speech	High	EUR
14:00	(Ecuador) Balance of Trade	Low	USD
14:00	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP
15:00	(Canada) BoC Monetary Policy Report	High	CAD
15:00	(Canada) BoC Interest Rate Decision	Medium	CAD
15:30	(United States) EIA Refinery Crude Runs Change	Low	USD
15:30	(United States) EIA Crude Oil Stocks Change	Medium	USD
15:30	(United States) EIA Heating Oil Stocks Change	Low	USD
15:30	(United States) EIA Gasoline Production Change	Low	USD
15:30	(United States) EIA Distillate Stocks Change	Low	USD
15:30	(United States) EIA Crude Oil Imports Change	Low	USD
15:30	(United States) EIA Gasoline Stocks Change	Medium	USD
15:30	(United States) EIA Cushing Crude Oil Stocks Change	Low	USD
15:30	(United States) EIA Distillate Fuel Production Change	Low	USD
16:00	(Kosovo) Inflation Rate YoY	Low	EUR
16:00	(Canada) BoC Press Conference	Medium	CAD
16:30	(United States) 17-Week Bill Auction	Low	USD
18:00	(United States) 10-Year Note Auction	Low	USD
19:00	(United States) FOMC Minutes	High	USD
19:00	(United States) Monthly Budget Statement	Medium	USD
20:15	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP

Today's Scenario: - Silver has gained significant upward momentum on Wednesday and has reached a new one-year high of around $25.40 during the early part of the European session. The precious metal has broken through a four-day trading band, confirming a bullish breakout and indicating potential for continued upward movement, as seen in the past month.

However, caution is advised for bullish traders as the daily Relative Strength Index (RSI) is already indicating overbought conditions. Therefore, it may be wise to wait for a period of consolidation or a slight pullback before taking further positions for potential short-term appreciation of XAG/USD. If a corrective decline does occur, it is likely to find support near the psychological level of $25.00.

Buy Scenario: - The price of silver (XAG/USD) is hovering around $25.00 after recording significant gains yesterday. The metal is attempting to reject the bearish "double top" chart formation on the hourly chart.

Silver buyers remain hopeful of breaking the double tops near $25.15, as the price is trading above the 100 and 200 Hourly Moving Averages (HMAs) and the Relative Strength Index (RSI) is firm but not yet overbought.

If the double tops are broken, the price could rise towards the April 2022 high of around $26.25. However, the RSI may become overbought at this point, which could prompt a correction before the price approaches the previous yearly top of around $27.00. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - On the downside, the 100-HMA and a two-week-old ascending trend line around $24.90 and $24.70, respectively, offer support to the XAG/USD price in the short term. If the price falls below $24.70, the previous Thursday's low of $24.60 and the 200-HMA level near $24.35 will be crucial support levels, and a break below them could push the Silver price towards the sub-$24.00 zone.

Overall, the Silver price is expected to remain strong, but further upside will depend on a clear break of the $25.15 resistance level. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -