XAG/USD retreats from daily highs towards $21.90 despite weak dollar

  • Silver is starting the week off on the wrong foot, down 0.57%.
  • In terms of sentiment, the market is positive, as evidenced by the rise in global equities.
  • Silver Price Prediction (XAG/USD): XAG/USD will fluctuate around $21.50-22.50.

Silver (XAG/USD) fell in Monday’s North American session, although the US Dollar traded slower in a shorter than usual trading session as US markets remained closed. on the occasion of Memorial Day. As of this writing, XAG/USD is trading at $21.97, above the $22.00 mark.

A risky market mood continues to head towards equities, weighing on safe-haven assets like silver. Asian and European stocks ended with gains, while US futures rose. The greenback is weaker on the day as seen by the US Dollar Index, down 0.31%, sitting at 101.323.

Fed talking crossed the wires. In Frankfurt, Federal Reserve Governor Christopher Waller said he advocated 50 basis point rate hikes on the table “until we see substantial reductions in inflation. Until we have that, I don’t see the point of stopping. He added that he supported 50 basis points in “several” meetings.

Silver traders should know that on Tuesday, US President Joe Biden and Federal Reserve Chairman Jerome Powell will meet for discussions at the White House on the state of the US and global economy.

The absence of Monday’s US economic calendar would have traders looking to market sentiment. In the week ahead, the US record would include May’s ISM manufacturing and non-manufacturing PMIs, CB consumer confidence and US employment data, led by nonfarm payrolls, the ADP report and demands. unemployment initials.

Silver Price Prediction (XAG/USD): Technical Outlook

Silver (XAG/USD) hit a two-week high at around $22.46 on Friday, and since then XAG/USD bulls have failed to hold prices above $22.00 . That said, the white metal is still trading in the $21.50-22.50 range, unable to register a successful break higher/lower beyond the bounds.

On the upside, the first resistance for XAGU/USD would be $22.00. A violation of the latter would send XAG/USD to the May 27 high at $22.46. Once clear, the next supply zone would be the February 11th low resistance at $22.86, followed by the February 15th low at $23.08.

On the other hand, the first support xAG/USD would be the May 26th low at $21.72. A break below would expose the May 13 swing low at $21.28, followed by the year-to-date low at $20.45.

Key technical levels

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