XAG / USD Bounces, Cut Losses, Eyes On 24.00

  • Metals stabilized after a steep decline, DXY hitting monthly highs above 94.00.
  • The strength of the US dollar is keeping metals under pressure ahead of next week’s FOMC meeting.
  • XAG / USD drops for day four, but moves away from lows.

Silver and gold are down sharply on Friday. A rally in the US dollar pushed XAG / USD to $ 23.68, the lowest level in a week. In the last few hours, silver has gained ground and climbed to $ 23.90. It is set to end the week lower, having found resistance at the 20-week moving average around 24.40.

DXY is up 0.90% on Friday, trading at monthly highs at 94.20, boosted amid month-end flows and ahead of next week’s FOMC meeting. The Federal Reserve is expected to announce a cut in its quantitative easing program. The latest round of economic data, including today’s Core CPE, has not changed market expectations.

US stocks are slightly higher. Even risk appetite does not avoid the rally in the greenback. For metals, a fall in US rates favored consolidation.

The daily chart’s bias in XAG / USD still shows some bullish arguments, with prices above key moving averages. Another fact is the elimination of the lows on Friday. Now silver needs to recover $ 24.25 first to gain momentum and then break key resistance of $ 24.75 to pave the way for more gains. A slide below $ 23.50 on the contrary would increase negative pressure.

Daily money graph

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