- The bulls are trying to correct the strong downward pressure imposed by the greenback.
- Silver traders will look to the Fed chairman today for an overview of the central bank’s policy roadmap.
At the time of writing, XAG / USD is trading at $ 25.94 and is virtually flat on the session after a strong start to the week where it ended up 0.65%. Money went from a low of $ 25.55 to a high of $ 26.08.
Overall, it was a strong day for commodities as they recovered on the greenback’s weakness and in a risk environment.
Financial and commodities markets have stabilized following the Fed’s hawkish announcement last week and Fed speakers are the center of attention.
Traders are paying close attention to Fed speakers this week.
Overnight we heard from New York Fed Chairman Williams who said the economy had not improved enough to cut stimulus. His comments were accompanied today by those of St. Louis Fed Chairman James Bullard, who cited the “upside risk” of potential inflation and said the central bank will have to remain “nimble” then. that the US economy will reopen after the COVID pandemic.
Meanwhile, President Jerome Powell is testifying outside Congress where analysts expect him to attempt to impose his assessment that the very strong impressions of inflation we have seen recently will fade.
This could be a drag on the greenback and support precious metals, especially if it explicitly rejects the idea of a rate hike in 2022 and ensures that financial market conditions remain orderly.
Silver technical analysis
Technically silver is attempting a rally but so far the price is well below a significant retracement.
A 38.2% Fibo costs $ 26.60. On failures at the current level, there is the prospect of another bearish leg towards a test of $ 25.00.