Published on Mar 23, 2023

Daily Analysis For Silver (XAG/USD) 23-03-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
07:00	(Lithuania) Industrial Production YoY	Low	EUR
07:00	(Lithuania) Industrial Production MoM	Low	EUR
08:00	(European Union) European Council Meeting	Medium	EUR
08:30	(Switzerland) SNB Interest Rate Decision	Medium	CHF
09:00	(Greece) Current Account	Low	EUR
09:30	(Slovenia) Consumer Confidence	Low	EUR
11:30	(Germany) Bundesbank Balz Speech	Low	EUR
12:00	(United Kingdom) BoE Interest Rate Decision	High	GBP
12:00	(United Kingdom) MPC Meeting Minutes	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Hike	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Unchanged	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Cut	Medium	GBP
12:00	(United States) Building Permits	Medium	USD
12:00	(United States) Building Permits MoM	Low	USD
12:00	(Germany) undesbank Wuermeling Speech	Low	EUR
12:30	(United States) Current Account	Medium	USD
12:30	(United States) Jobless Claims 4-week Average	High	USD
12:30	(United States) Continuing Jobless Claims	High	USD
12:30	(United States) Initial Jobless Claims	High	USD
12:30	(United States) Chicago Fed National Activity Index	Medium	USD
14:00	(United States) New Home Sales MoM	High	USD
14:00	(United States) New Home Sales	High	USD
14:30	(United States) EIA Natural Gas Stocks Change	Low	USD
15:00	(Euro Area) Consumer Confidence	Medium	EUR
15:00	(United States) Kansas Fed Composite Index	Low	USD
15:00	(United States) Kansas Fed Manufacturing Index	Low	USD
15:00	(United Kingdom) BoE L Mann Speech	Medium	GBP
15:00	(Euro Area) ECB Lane Speech	Low	EUR
15:30	(United States) 8-Week Bill Auction	Low	USD
15:30	(United States) 4-Week Bill Auction	Low	USD
17:00	(United States) 10-Year TIPS Auction	Low	USD
22:00	(Australia) Judo Bank Manufacturing PMI	High	AUD
22:00	(Australia) Judo Bank Services PMI	High	AUD
22:00	(Australia) Judo Bank Composite PMI	Low	AUD
23:30	(Japan) Inflation Rate Ex-Food and Energy YoY	Low	JPY
23:30	(Japan) Inflation Rate YoY	High	JPY
23:30	(Japan) Inflation Rate MoM	Low	JPY
23:30	(Japan) Core Inflation Rate YoY	Medium	JPY
23:50	(Japan) Foreign Bond Investment	Low	JPY
23:50	(Japan) Stock Investment by Foreigners	Low	JPY

Today's Scenario: - The price of silver (XAG/USD) continues to stay strong, reaching its highest level since early February, following a notable increase the previous day. Currently, the bulls are taking a breather around the $23.00 mark during early trading on Thursday.

This recent surge in silver prices is likely due to a variety of factors, including increased demand for safe-haven assets amid global economic uncertainty, as well as inflation concerns. As a result, investors have been flocking to precious metals such as silver as a hedge against these risks.

It's important for traders to monitor the price movements of silver closely, as they can provide valuable insights into potential market trends and opportunities. By staying informed about the latest developments in the silver market, traders can make informed decisions and potentially profit from market movements.

Buy Scenario: - On the Buying side, the lower line of the previously mentioned wedge is acting as an immediate resistance for the Silver price, which is currently around $22.70. If the price manages to break past this level, the next challenge for Silver buyers could be the 61.8% Fibonacci retracement of the metal's downside from February to March, which is also known as the "golden Fibonacci ratio" and sits at around $22.85.

If the XAG/USD price continues to rise beyond $22.85, the top line of the bearish chart pattern and the late January swing low will converge to create a tough barrier for Silver bulls around the $23.00 mark before they can take control of the market.

Overall, the XAG/USD price is facing several resistance levels, which could limit its upside potential in the short term. However, if the price manages to break through these levels, it may gain momentum and attract more buyers into the market. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - Despite struggling with the nearly overbought Relative Strength Index (RSI), the price of silver remains of interest to buyers due to its successful upside break of the previous resistance area from early June 2022, as well as its bullish MACD signals and ability to stay above key Daily Moving Averages (DMAs).

However, there are still several obstacles that could limit the immediate upside potential for XAG/USD. These include multiple hurdles that were observed earlier in 2023, which currently guard the price near the $23.30 mark, the round figure of $24.00, and the $24.30 hurdles. Only after surpassing these levels could the price potentially challenge the Year-To-Date (YTD) high, which is currently situated around $24.65.

As always, traders should keep a close eye on the latest developments and trends in the silver market to make informed trading decisions. By staying informed and monitoring support and resistance levels, traders can better position themselves to capitalize on potential market movements. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -