{"id":28055,"date":"2023-09-22T05:32:20","date_gmt":"2023-09-22T08:32:20","guid":{"rendered":"https:\/\/tiproject.online\/index.php\/2023\/09\/22\/xag-usd-shows-resilience-amidst-rising-rates\/"},"modified":"2023-09-22T05:32:20","modified_gmt":"2023-09-22T08:32:20","slug":"xag-usd-shows-resilience-amidst-rising-rates","status":"publish","type":"post","link":"https:\/\/tiproject.online\/index.php\/2023\/09\/22\/xag-usd-shows-resilience-amidst-rising-rates\/","title":{"rendered":"XAG\/USD Shows Resilience Amidst Rising Rates"},"content":{"rendered":"

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Silver\u2019s Response to Interest Rates<\/h2>\n

Silver (XAG\/USD)<\/a> marked an increase of 1.15%, settling at $23.702 per ounce on Friday. Despite a robust dollar and ascending bond yields, silver\u2019s resilience emerges as central banks signal the retention of high interest rates. The underlying concern? Potential deceleration of global economic growth.<\/p>\n

USD Dynamics and Treasury Yields<\/h2>\n

The U.S. dollar remains formidable, nearing a six-month pinnacle, while the 10-year Treasury yields touch a 16-year zenith. This has put equities under duress. Silver, traditionally a safe-haven asset, grapples with these heightened interest rates, which tend to weigh on metals not yielding interest.<\/p>\n<\/div>\n<\/div>\n

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Federal Reserve\u2019s Outlook<\/h2>\n

The Fed remains consistent in its rate approach, though there\u2019s buzz about a probable rate augmentation this year, extending through 2024. This perceived hawkishness briefly pressured silver prices. However, post-FOMC spot silver depicts a more tempered dip, suggesting an anticipatory sentiment for a forthcoming U.S. rate moderation.<\/p>\n

Market Anticipation and Indicators<\/h2>\n

Per the CME FedWatch tool, the market senses a 45% chance for another rate upswing this year and a 44% probability for rate retractions by early 2024. Contextualizing this sentiment is the Bank of Japan\u2019s stance on sustaining ultra-low rates and the imminent PMI data release from key economies like the UK, U.S., and the Eurozone.<\/p>\n

Short-term Forecast:\u00a0 Leaning Toward Bullish<\/h2>\n

In the prevailing financial ecosystem, silver\u2019s upward trajectory is closely tied to the evolution of Treasury yields. With these yields at notable highs, the silver market remains vigilant to upcoming U.S. employment figures and the Federal Reserve\u2019s ensuing strategies. The prevalent sentiment? A cautious optimism veering toward a bullish disposition for silver.<\/p>\n

Technical Analysis<\/h2>\n
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4-Hour Silver (XAG\/USD)<\/figcaption>

The current 4-hour price of 24.015 showcases an advancement compared to the previous 4-hour close of 23.855. When observing the moving averages, the commodity is trading above both the 200-4H moving average (23.524) and the 50-4H moving average (23.374), indicating an underlying bullish momentum.<\/p>\n

The 14-4H RSI reading of 64.35 supports this sentiment, sitting above the 50 threshold but below the overbought level, suggesting increasing but not extreme momentum.<\/p>\n

With the current price above the main support area (23.330 to 23.105) and below the main resistance range (25.170 to 25.455), it reveals a bullish market sentiment for the short-term, as the commodity seeks to challenge higher resistance levels.<\/p>\n<\/div>\n<\/div>\n

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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

[ad_1] Silver\u2019s Response to Interest Rates Silver (XAG\/USD) marked an increase of 1.15%, settling at $23.702 per ounce on Friday. Despite a robust dollar and ascending bond yields, silver\u2019s resilience emerges as central banks signal the retention of high interest rates. The underlying concern? Potential deceleration of global economic growth. USD Dynamics and Treasury Yields The U.S. dollar remains formidable, nearing a six-month pinnacle, while the 10-year Treasury yields touch a 16-year zenith. This has put equities under duress. Silver, traditionally a safe-haven asset, grapples with these heightened interest rates, which tend to weigh on metals not yielding interest. Federal Reserve\u2019s Outlook The Fed remains consistent in its rate approach, though there\u2019s buzz about a probable rate augmentation this year, extending through 2024. This perceived hawkishness briefly pressured silver prices. However, post-FOMC spot silver depicts a more tempered dip, suggesting an anticipatory sentiment for a forthcoming U.S. rate moderation. Market Anticipation and Indicators Per the CME FedWatch tool, the market senses a 45% chance for another rate upswing this year and a 44% probability for rate retractions by early 2024. Contextualizing this sentiment is the Bank of Japan\u2019s stance on sustaining ultra-low rates and the imminent PMI data release from key economies like the UK, U.S., and the Eurozone. Short-term Forecast:\u00a0 Leaning Toward Bullish In the prevailing financial ecosystem, silver\u2019s upward trajectory is closely tied to the evolution of Treasury yields. With these yields at notable highs, the silver market remains vigilant to upcoming U.S. employment figures and the Federal Reserve\u2019s ensuing strategies. The prevalent sentiment? A cautious optimism veering toward a bullish disposition for silver. Technical Analysis 4-Hour Silver (XAG\/USD)The current 4-hour price of 24.015 showcases an advancement compared to the previous 4-hour close of 23.855. When observing the moving averages, the commodity is trading above both the 200-4H moving average (23.524) and the 50-4H moving average (23.374), indicating an underlying bullish momentum. The 14-4H RSI reading of 64.35 supports this sentiment, sitting above the 50 threshold but below the overbought level, suggesting increasing but not extreme momentum. With the current price above the main support area (23.330 to 23.105) and below the main resistance range (25.170 to 25.455), it reveals a bullish market sentiment for the short-term, as the commodity seeks to challenge higher resistance levels. [ad_2] Source link<\/p>\n","protected":false},"author":1,"featured_media":28056,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-28055","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financas"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/28055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/comments?post=28055"}],"version-history":[{"count":0,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/28055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media\/28056"}],"wp:attachment":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media?parent=28055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/categories?post=28055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/tags?post=28055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}