Silver Price Analysis: XAG/USD sees vulnerable, sustained weakness below $19.00 awaited

• Silver shows some resilience below the $19.00 mark and reverses the early dip to a multi-day low.
• The technical set-up still favours bearish traders and supports prospects for further near-term fall.
• A sustained strength beyond the $20.00 psychological mark is needed to negate the negative bias.

Silver reverses an intraday dip to sub-$19.00 levels, or a multi-day low and climbs to the top end of its daily trading range heading into the North American session. The XAG/USD pair is currently hovering around the $19.15-$19.20 region, still down over 0.20% for the day.

From a technical perspective, any subsequent move-up is likely to face resistance near the $19.30-$19.40 confluence support breakpoint. The said area comprises the 38.2% Fibonacci retracement level of the sharp downfall from the monthly peak and the 100-hour SMA, which should now act as a pivotal point for intraday traders.

A sustained strength beyond might trigger a short-covering move and allow the XAG/USD to reclaim the $20.00 psychological mark. The positive momentum could get extended towards an intermediate hurdle near the $20.50 area, above which bulls could target the $21.00 mark en route to the monthly peak, around the $21.25 region.

On the flip side, the $18.95-$18.90 zone coincides with the 23.6% Fibo. level. A convincing break below will be seen as a fresh trigger for bearish traders and expose the $18.00 mark, with some intermediate support near the $18.30-$18.25 region. The XAG/USD could eventually drop further to challenge the YTD low, around the $17.55 area.

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Silver Price Analysis: XAG/USD fades rebound from 10-DMA above $19.00

Silver price remains sidelined after bouncing off 10-DMA.

Bullish MACD signals, firmer RSI keeps buyers hopeful but upside remains elusive below the descending resistance line from June.

Multiple supports to test bears before the yearly low.

Silver price (XAG/USD) seesaw around $19.15-20 during early Friday morning in Europe, fading the early Asian session bounce off the 10-DMA.

The bright metal’s latest inaction could be linked to the inability to cross the 50-DMA hurdle, around $19.25 by the press time. Even so, the bullish MACD signals and firmer RSI (14), keep the XAG/USD bulls hopeful.

That said, a downward sloping resistance line from June, around $19.90, appears a tough nut to crack for the bulls.

Following that, the 100-DMA level surrounding $20.35 acts as the last defense for the XAG/USD bears before directing the price towards the previous monthly peak near $20.90 and then to the $21.00 threshold.

Alternatively, pullback moves may initially aim for the 10-DMA support level of $18.90 before directing sellers towards the multiple supports around $18.25 and $18.10.

In the case where silver sellers keep reins past $18.10, the $18.00 round figure and the yearly bottom near $17.55 will be in focus.

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Silver Price Analysis: XAG/USD consolidates near $22.00, within weekly ranges as traders eye US CPI

Silver is trading near $22.00 per troy ounce, well within this week’s ranges.

XAG/USD has traded subdued so far this week, much as with other asset classes, ahead of US CPI on Friday.

Spot silver (XAG/USD) prices continue to trade within recent intra-day ranges amid a subdued tone to broader macro trading conditions. XAG/USD is currently trading near the $22.00 per troy ounce level, well within the $21.80-$22.50ish ranges that have prevailed over the past five sessions. The precious metal continues to fund support ahead of its 21-Day Moving Average around the $21.80 level.

Silver’s directionless feel reflects the price action being seen in other major asset classes (like US equities, US bond yields and the US dollar), which are all also locked within recent intra-day ranges amid a lack of notable fundamental catalysts, as traders keep their powder dry ahead of this Friday’s US Consumer Price Inflation (CPI) data.

While the upcoming CPI report is just one of many reports that the looks at to gauge US inflationary pressures, it is certainly one of the more important ones, with traders set to pay particularly keen attention to measures of core price pressures. Any signs of a further slowing in the MoM and YoY rates of core inflation would contribute to the growing sense that US inflation has now peaked.

Furthermore, this would come as a welcome development for the Fed, which may be able to slow the pace of monetary tightening from September following widely flagged consecutive 50 bps rate hikes in June (next week) and July. This would probably weigh on both the US dollar and US yields, which would come as a boost to precious metals like silver. In this bullish scenario, a test of and potential break above recent highs in the $22.50 area would be on the cards, with bulls eyeing a move towards $23.00 in the short term.

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