The XAG/USD trades at $23.80, its highest since early September.
The USD and Treasury yields tumbled after soft economic data was reported from the US.
As long as investors bet on a less aggressive Fed, it will benefit the grey metal.
The XAG/USD saw significant upward movements in Thursday’s session, soaring to $23.80, seeing more than 1.50% gains. The metal increased amid soft Industrial Production and Jobless Claims, which fuelled a decline in US yields, allowing the metal to gain interest.
The Initial Jobless Claims for the week ending November 10 in the US experienced a significant rise to 231,000, surpassing the projected 220,000 and setting a three-month high. Additionally, Industrial Production for October fell short of expectations, showing a 0.6% drop on a month-on-month basis, beating the 0.3% decrease expected. Following the release of the data, the US Treasury yields, typically viewed as the cost of holding non-yielding metals, sharply declined. The 2-year bond rate decreased to 4.83%, while the 5-year and 10-year yields dropped by 4.42% and 4.44%, respectively.
It’s worth noticing that the US economy has recently reported evidence of inflation and job creation cooling down, making investors confident that the Federal Reserve (Fed) won’t take a more aggressive stance in its next meetings. Adding to that, the bank official also stated that they needed to see further evidence of the economy decelerating so the reports of soft Consumer and Producer Price Indexes, the rising Jobless Claims and weakening Industrial Production, strengthened the case of a more dovish monetary policy. Meanwhile, the CME FedWatch tool indicates that the market has already factored in a pause in December and is now pricing in rate cuts for April- May 2024. Consequently, as long as the US Dollar weakens and investors anticipate a less aggressive Federal Reserve, the price of silver could continue to rise.
XAG/USD levels to watch
On the daily chart, the XAG/USD now holds a bullish technical bias, as indicators suggest that the buyers are in command. The Relative Strength Index (RSI) indicate positive momentum with an ascending slope above its midline, while the Moving Average Convergence (MACD) histogram prints larger green bars. Zooming out, the pair is above the 20,100,200-day Simple Moving Average (SMA), suggesting that the bulls are also firmly in control of the overall trend.
Supports: $23.50, $23.30 – $23.20 (200 and 100-day SMA convergence).
Resistances: $24.00, $24.30, $24.50.
XAG/USD daily chart
-638357621255543462.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-soars-amid-soft-indutrial-production-and-jobless-claims-figures-from-the-us-202311162010