Silver Price (XAGUSD) Off Monthly Lows
Economic uncertainties along with many other factors have hit the global markets recently. Silver was not spared as the US dollar gained some of its strength back.
Silver Price (XAG/USD) has paused its six-day losing streak in precious metals. This was after it recorded 9-week lows of $21.70 in early trades, according to the latest data.
The strengthening dollar across its main competitors had caused a continuous drop in Silver. Investors’ flight to safety has boosted the haven demand for the dollar due to fears over the COVID-19 resurgence. The implications of the pandemic on the global economy are leading to growing concerns.
Silver is trying a minor recovery after meeting strong demand around $21.70. This is based on a short-term technical review. This region represents the falling trendline support.
The bulls seem to be ready to bring back the critical 21-daily Simple Moving Average (DMA). At the moment it is pegged at $23.02, for the recovery to gain momentum.
The hourly Relative Strength Index (RSI) charts show a rebound from within the oversold territory. It’s now pointing higher at 37.20 adding some credence to the pullback.
A strong break over the 21-HMA barrier might reveal the falling trendline resistance at $23.60. The next upside target after that has formed at the downward-sloping 50-HMA of $23.78.
However, a rejection at the 21-HMA might strengthen the bearish bias. In this case it will call for a retest of the falling trendline. A breach of this level might prompt a fresh sell-off towards the $20 level.
Commodity news reports that silver is currently trading below all the major moving averages on the hourly charts. Thus, the bull’s road to recovery remains a major challenge.
Gold Continues to Slide on Strong Dollar
Meanwhile, while Silver tries a minor recovery, Gold continued to slide Thursday morning in Asia’s commodities. The dollar, supported by a strong U.S. housing market and concerns over risk in other markets is assisting its fall.
The yellow metal has hit its lowest price in two months.
Gold futures fell 0.37% at $1,860.50. What pushed gold prices down overnight to a two-month low was a general slowdown in Europe. This was alongside concerns expressed by U.S. state and U.S. Federal Reserve about further stimulus measures.
Gold declined through the $1,900 mark as risk-averse investors sought haven in the greenback instead.
