{"id":28259,"date":"2023-10-02T03:52:15","date_gmt":"2023-10-02T06:52:15","guid":{"rendered":"https:\/\/tiproject.online\/index.php\/2023\/10\/02\/xag-usd-sinks-as-rate-hike-rumors-rattle-markets\/"},"modified":"2023-10-02T03:52:15","modified_gmt":"2023-10-02T06:52:15","slug":"xag-usd-sinks-as-rate-hike-rumors-rattle-markets","status":"publish","type":"post","link":"https:\/\/tiproject.online\/index.php\/2023\/10\/02\/xag-usd-sinks-as-rate-hike-rumors-rattle-markets\/","title":{"rendered":"XAG\/USD Sinks as Rate Hike Rumors Rattle Markets"},"content":{"rendered":"

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Rate Jitters Pull Silver Prices Lower<\/h2>\n

Silver (XAG\/USD)<\/a> is slumping on Monday, testing its lowest price since March 13, amid a stronger U.S. dollar and heightened speculation over interest rates. The descent follows a steep loss in September and the third quarter.<\/p>\n

Federal Reserve Confusion<\/h2>\n

Market participants are grappling with inconsistent cues from the Federal Reserve on the trajectory of interest rate hikes. While Minneapolis Fed President Neel Kashkari remains uncertain over the adequacy of current interest rates in tackling inflation, New York Fed President John Williams hints at an end to the rate-hiking cycle.<\/p>\n<\/div>\n<\/div>\n

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Dollar Strength and Treasury Yields<\/h2>\n

Riding the coattails of potential rate hikes, the dollar has reached a 10-month high, exacerbating silver\u2019s woes. Concurrently, U.S. 10-year Treasury yields have retraced from a 15-year peak, illustrating the market\u2019s divided stance on inflation. CME FedWatch Tool data shows almost equal probabilities for another rate hike this year and for policy easing in H1 2024.<\/p>\n

Dim Outlook on Silver Demand<\/h2>\n

The appetite for silver as a financial cushion against economic turbulence appears fragile, reflecting concerns about the U.S.\u2019 uncertain economic path. The core PCE index\u2014Fed\u2019s preferred inflation barometer\u2014showed a moderation in August, adding to the bearish sentiment around silver.<\/p>\n

Short-Term Forecast<\/h2>\n

Given the existing climate of rate uncertainty and a strong dollar, the immediate outlook for silver is bearish. Traders should tread cautiously due to mixed signals on rate adjustments from Federal Reserve officials.<\/p>\n

Technical Analysis<\/h2>\n
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Daily Silver (XAG\/USD)<\/figcaption>

After verifying the moving averages, it\u2019s clear that Silver (XAG\/USD) is experiencing bearish conditions. The current daily price of 21.73 sits well below both the 200-day moving average of 23.44 and the 50-day moving average of 23.39, indicating that the commodity is in a downtrend.<\/p>\n

This is supported by a 14-Day RSI of 29.36, which is significantly below the 30 threshold, marking it as oversold.<\/p>\n

The current price is also beneath both main and minor support levels, 22.36 and 22.84 respectively, suggesting a lack of buyer interest at these key price points.<\/p>\n

Trend line support is at 22.33, which has already been broken, potentially accelerating the downside. Minor and main resistance levels stand at 23.35 and 23.77, far removed from the current trading price.<\/p>\n

Overall, with multiple technical indicators showing weakness, the market sentiment for Silver leans heavily bearish.<\/p>\n<\/div>\n<\/div>\n

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

[ad_1] Rate Jitters Pull Silver Prices Lower Silver (XAG\/USD) is slumping on Monday, testing its lowest price since March 13, amid a stronger U.S. dollar and heightened speculation over interest rates. The descent follows a steep loss in September and the third quarter. Federal Reserve Confusion Market participants are grappling with inconsistent cues from the Federal Reserve on the trajectory of interest rate hikes. While Minneapolis Fed President Neel Kashkari remains uncertain over the adequacy of current interest rates in tackling inflation, New York Fed President John Williams hints at an end to the rate-hiking cycle. Dollar Strength and Treasury Yields Riding the coattails of potential rate hikes, the dollar has reached a 10-month high, exacerbating silver\u2019s woes. Concurrently, U.S. 10-year Treasury yields have retraced from a 15-year peak, illustrating the market\u2019s divided stance on inflation. CME FedWatch Tool data shows almost equal probabilities for another rate hike this year and for policy easing in H1 2024. Dim Outlook on Silver Demand The appetite for silver as a financial cushion against economic turbulence appears fragile, reflecting concerns about the U.S.\u2019 uncertain economic path. The core PCE index\u2014Fed\u2019s preferred inflation barometer\u2014showed a moderation in August, adding to the bearish sentiment around silver. Short-Term Forecast Given the existing climate of rate uncertainty and a strong dollar, the immediate outlook for silver is bearish. Traders should tread cautiously due to mixed signals on rate adjustments from Federal Reserve officials. Technical Analysis Daily Silver (XAG\/USD)After verifying the moving averages, it\u2019s clear that Silver (XAG\/USD) is experiencing bearish conditions. The current daily price of 21.73 sits well below both the 200-day moving average of 23.44 and the 50-day moving average of 23.39, indicating that the commodity is in a downtrend. This is supported by a 14-Day RSI of 29.36, which is significantly below the 30 threshold, marking it as oversold. The current price is also beneath both main and minor support levels, 22.36 and 22.84 respectively, suggesting a lack of buyer interest at these key price points. Trend line support is at 22.33, which has already been broken, potentially accelerating the downside. Minor and main resistance levels stand at 23.35 and 23.77, far removed from the current trading price. Overall, with multiple technical indicators showing weakness, the market sentiment for Silver leans heavily bearish. [ad_2] Source link<\/p>\n","protected":false},"author":1,"featured_media":28260,"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-28259","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\/28259","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=28259"}],"version-history":[{"count":0,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/28259\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media\/28260"}],"wp:attachment":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media?parent=28259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/categories?post=28259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/tags?post=28259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}