- 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).