Silver prices above $24.00 experience an unpredictable shift as Federal Reserve Chair Powell indicates the possibility of further interest rate increases.
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- Silver price turns topsy-turvy above $24.00 as Fed Powell keeps doors open for more interest rate hikes.
The pair currently trades last at 24.106.
The previous day high was 24.35 while the previous day low was 24.06. The daily 38.2% Fib levels comes at 24.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.24, expected to provide resistance.
Silver price (XAG/USD) turns volatile with the crucial support of $24.00 in the early New York session. The white metal remains sideways as uncertainty about commentary Federal Reserve (Fed) chair Jerome Powell escalates. The situation of decent consumer spending, the tight labor market environment, and declining inflationary pressures have elevated uncertainty about interest rates.
S&P500 opened on a positive note ahead of Jerome Powell’s commentary at Jackson Hole. The US Dollar Index (DXY) corrects gradually to near 104.00 as investors remain uncertain about Powell’s commentary.
Jerome Powell stated in commentary that interest rates can be raised further if data remains encouraging. About the labor market, Fed Powell believes that the job market is not cooling enough and could warrant further policy action.
Meanwhile, Philadelphia Fed Bank President Patrick Harker supports sustaining interest rates at the 5.25% to 5.5% range. Harker sees no rate cuts this year.
Silver price forms a Bullish Flag chart pattern on a two-hour scale, which is a trend-following pattern. The white metal consolidates above $24.00, portraying an inventory accumulation by institutional investors from retail participants. The 20-period Exponential Moving Average (EMA) is consistently providing support to the Silver bulls.
The Relative Strength Index (RSI) (14) trades in the bullish range of 60.00-80.00, which indicates that the upside momentum is intact.
Technical Levels: Supports and Resistances
XAGUSD currently trading at 24.31 at the time of writing. Pair opened at 24.12 and is trading with a change of 0.79 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 24.31 |
| 1 | Today Daily Change | 0.19 |
| 2 | Today Daily Change % | 0.79 |
| 3 | Today daily open | 24.12 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.32, 50 SMA 23.53, 100 SMA @ 23.99 and 200 SMA @ 23.33.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 23.32 |
| 1 | Daily SMA50 | 23.53 |
| 2 | Daily SMA100 | 23.99 |
| 3 | Daily SMA200 | 23.33 |
The previous day high was 24.35 while the previous day low was 24.06. The daily 38.2% Fib levels comes at 24.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.24, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 24.0, 23.88, 23.7
- Pivot resistance is noted at 24.3, 24.47, 24.59
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 24.35 |
| Previous Daily Low | 24.06 |
| Previous Weekly High | 23.01 |
| Previous Weekly Low | 22.23 |
| Previous Monthly High | 25.27 |
| Previous Monthly Low | 22.52 |
| Daily Fibonacci 38.2% | 24.17 |
| Daily Fibonacci 61.8% | 24.24 |
| Daily Pivot Point S1 | 24.00 |
| Daily Pivot Point S2 | 23.88 |
| Daily Pivot Point S3 | 23.70 |
| Daily Pivot Point R1 | 24.30 |
| Daily Pivot Point R2 | 24.47 |
| Daily Pivot Point R3 | 24.59 |
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