Sliver (XAG/USD) Analysis
Key Points: -
- US retail sales in June, including core retail sales, fell below expectations, indicating weakness in the US economy. Additionally, industrial production experienced a significant decline, further highlighting the economic challenges.
- The dovish comments from ECB member Klaas Knot suggest a potential pause in the European Central Bank's tightening cycle. This provides a bullish backdrop for silver, as it implies a potentially supportive monetary policy environment.
- US Treasury bond yields remained relatively stable, with the 2-year Treasury note yielding 4.764% and the 10-year benchmark note at 3.789%.
Today's Scenario: -
As the Asian session begins, the price of silver is advancing and has reclaimed the $25.00 level. This upward movement is supported by weak economic data from the United States (US) and lower inflation reports in Canada. Additionally, the "dovish" stance of European Central Bank (ECB) member Klas Knot has raised the possibility of the ECB halting its tightening cycle. The XAG/USD pair is currently trading at $25.06 per troy ounce, showing a gain of 0.01%.
Diagram of XAG/USD (Silver): -
Economic Events: -
Buy Scenario: -
Based on the daily chart, silver is showing an upward bias, but it may face resistance around the May 11 high of $25.47, which is likely to be tested in the near future. It's worth noting that the Relative Strength Index (RSI) is approaching overbought territory. Despite this, if the XAG/USD pair manages to break above the mentioned level, it could rally towards $26.00. Till we did not recommend buying Silver (XAG/USD).
Sell Scenario: -
On the other hand, if silver fails to surpass the $25.00 level, its immediate support would be at the June 9 high of $24.52. A further decline could lead to a test of the $24.00 level. Till we do not advise selling silver (XAG/USD).
Support and Resistance Level: -
S1 24.83 - R1 25.23
S2 24.60 - R2 25.40
S3 24.43 - R3 25.64