XAG/USD surges to a new four-week high of $31.50 amid rising dovish expectations for the Federal Reserve
FUNDAMENTAL OVERVIEW:
- Silver prices climb above $31.50, driven by solid expectations of a dovish Federal Reserve stance.
- A potential ceasefire between Russia and Ukraine may dampen safe-haven demand.
- Meanwhile, investors are closely monitoring the upcoming annual China Central Economic Work Conference.
Silver price (XAG/USD) rallies above $31.50 at the start of the week, gaining momentum as market participants grow increasingly confident that the Federal Reserve will lower interest rates by 25 basis points to a range of 4.25%-4.50% during its December 18 policy meeting.
Meanwhile, renewed efforts for a ceasefire between Russia and Ukraine, led by US President-elect Donald Trump, could reduce safe-haven demand for silver.
This week, investors will turn their attention to the closed-door annual Central Economic Work Conference, scheduled for Dec 11-12, according to Bloomberg. The committee must outline priorities for the upcoming year while assessing current economic performance. The conference’s outcome will impact silver prices, considering silver’s role in various industries.
XAG/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Silver is trading within a up channel.
Silver is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 31.72
Immediate support level: 31.03
HOW TO TRADE XAG/USD
Silver initially rallied but faced resistance, leading to a price decline. The price found support and stabilized, forming a consolidation zone. A recent breakout above the resistance level suggests further upward momentum. However, a potential pullback to retest the breakout level could occur before the next upward move.
TRADE SUGGESTION- LIMIT BUY – 31.42, TAKE PROFIT AT- 32.25, SL AT- 31.02.