Silver price rises above $24.00 following the release of disappointing preliminary PMI data for August by S&P Global.

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• Silver price jumps above $24.00 after S&P Global reported weak preliminary PMI data for August.

The pair currently trades last at 24.198.

The previous day high was 23.45 while the previous day low was 23.21. The daily 38.2% Fib levels comes at 23.36, expected to provide support. Similarly, the daily 61.8% fib level is at 23.3, expected to provide support.

Silver price (XAG/USD) rallies above $24.00 as the US Dollar comes under pressure after S&P Global reported a weak preliminary PMI for August. Preliminary Manufacturing PMI for August at 47.0 underperforms expectations of 49.3 and July’s reading of 49.0. Also, Services PMI remained lower at 51.0 vs. estimates of 52.2 and the former release of 52.3.

Weak PMI figures demonstrate the consequences of tight monetary policy by the Federal Reserve (Fed). US central bank has raised interest rates aggressively to 5.25-5.50% in a war against stubborn inflation. Price pressures have come significantly lower to 3% but investors hope that inflation in excess of the desired rate will be extremely persistent.

The US Dollar Index drops vertically to near 103.50 after printing a fresh 10-week high of 104.00 as vulnerable economic activities could force the Fed to keep interest rates steady. Also, 10-year US Treasury Yields dropped sharply to near 4.23%.

Going forward, investors will keenly focus on Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, which will start on Thursday. Jerome Powell is likely to convey how long interest rates will remain steady at elevated levels. Apart from that, the outlook on the economy and inflation will be keenly watched.

Silver price climbs above the 61.8% Fibonacci retracement (plotted from July 20 high at $25.27 to August 15 low at $22.23) at $24.00 on a two-hour scale. Upward-sloping 20-period Exponential Moving Average (EMA) at $23.00 indicates that the short-term trend is extremely bullish.

The Relative Strength Index (RSI) (14) settles into the bullish range of 60.00-80.00, which indicates more upside ahead.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.16 at the time of writing. Pair opened at 23.41 and is trading with a change of 3.2 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.35, 50 SMA 23.51, 100 SMA @ 24.0 and 200 SMA @ 23.31.

The previous day high was 23.45 while the previous day low was 23.21. The daily 38.2% Fib levels comes at 23.36, expected to provide support. Similarly, the daily 61.8% fib level is at 23.3, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.26, 23.11, 23.02
• Pivot resistance is noted at 23.51, 23.6, 23.75

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