XAG / USD Dips To $ 24.22 Following Fed Powell Comments

  • Silver plunges from $ 24.85 to $ 24.20 after Powell’s speech.
  • Fed Powell confirms weakening QE and falling demand for metals.
  • XAG / USD remains bullish, with the resistance area of ​​$ 24.85 in focus.

Silver futures retreated from levels just below two-month highs, at $ 24.87, retreating to the $ 24.20 area due to the bullish reaction of the US dollar to Fed Powel’s comments .

Metal prices die as Powell confirms QE cut

Precious metals fell on Friday, to betray previous gains, following comments from Federal Reserve Chairman Powell in a virtual appearance. Powell confirmed the bank’s plan to start canceling bond purchases, but played down the idea of ​​accelerating interest rate hikes.

Market reaction helped the dollar recover, with the USD index rising 0.2% after rebounding from session lows of 93.50 to 93.75, while equity markets and precious metals have declined.

XAG / USD: remains positive, with resistance of $ 24.85 on the point

Technical indicators remain fairly positive looking at a broader perspective, silver futures are expected to retest early September highs at $ 24.80. If that level breaks, the pair could take a break before aiming for $ 25.20 (August 3 low) and the April high, at $ 26.00.

On the downside, immediate support is at 24.10 (Oct 21 low) and below here trendline support for late September lows, now around $ 23.40, holds the positive trend. Below, bears could gain ground and pull the pair down to $ 23.00 (October 18 low) and 22.20 / 35 (October 6-12 low).

Technical levels to watch

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