The XAG/USD is hovering near the $24.30 mark, showing 0.60% gains.
The Q3 GDP real growth was revised to 4.9%, lower from the previous 5.2%.
The Fed’s dovish shifts and the US yields in multi-month lows make the metal gain appeal.
In Thursday’s trading session, the Silver’s spot price XAG/USD edged higher and reached a level of around $24.30. The primary driver of this upward trend has been the weakening of the USD following Gross Domestic Product (GDP) revisions and negative weekly Jobless Claims, which pushed the price higher.
In line with that, the US Bureau of Economic Analysis revealed on Thursday that the United States real GDP grew annually by 4.9% in Q3, which is a downward revision from previous estimates and market forecasts of 5.2%. In addition, the US Department of Labor’s initial Jobless Claims report for the week ending December 16 revealed an increase in claims to 205K, compared to the previous week’s 203K. Despite the rise, the figure was lower than the expected 215K. Personal Consumption Expenditures figures from the US from November are due on Friday, which may fuel additional volatility on the index.
On the other hand, US Treasury yields slightly recovered after hitting multi-month lows. The 2-year rate is seen at 4.30%, while both the 5-year and 10-year yields are seen at 3.89%, both near their lowest level since July. This came in line with the markets betting on a less aggressive Federal Reserve (Fed) after the Summary of Economic Proyections (SEP) revealed last week that the officials are seeing 75 bps of easing next year. In that sense, this downward trend bolsters non-yielding assets as Treasury bond yields are often perceived as the opportunity cost of holding such metals.
XAG/USD levels to watch
The daily chart suggests that the pair has an impressive buying momentum in the short term. The positive slope in the positive territory of the Relative Strength Index (RSI) signifies a strengthening in the power of buyers in the market. Further solidifying this bullish sentiment is the sight of the Moving Average Convergence Divergence (MACD) flashing rising green bars, typically signaling that the buyers have taken the reins of market momentum.
Supplementing this view, the pair’s position above the 20, 100, and 200-day Simple Moving Averages (SMAs) unequivocally outlines a robust control by the bulls in the broader time horizon.
Support Levels: $24.15 (20-day SMA), $23.60 (200-day SMA), $23.30.
Resistance Levels: $24.70, $24.90, $25.00.
XAG/USD daily chart
-638387835322621351.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/silver-price-analysis-xag-usd-jumps-higher-on-weaker-us-dollar-202312211942
