- Attempts to raise silver topped below $ 22.80.
- The strength of the US dollar weighs on precious metals.
- XAG / USD: Sideways shift between $ 22.20 and $ 23.15.
Silver opened the week on a slightly positive tone although it was unable to break above $ 22.80 amid widespread US dollar strength. The precious metal retreated to the $ 22.65 area during the US trading session to remain virtually unchanged on the daily charts.
US dollar strength weighs on precious metals
Silver and precious metals, in general, remain on the defensive against a stronger US dollar as the market braces for the official announcement that the Federal Reserve will cut bond purchases. The US dollar index rose about 0.15% on Monday, reversing the losses of the previous two days and approaching year-round highs at 94.50.
The US dollar generally appreciated on Monday. Investors speculated that the disheartening report on non-farm wages in the United States seen last Friday probably wouldn’t deter the Fed from announcing its plan to start canceling monetary stimulus at its next monetary policy meeting in November.
XAG / USD: consolidation between $ 22.20 and $ 23.15
From a technical standpoint, the pair has consolidated within a narrow range over the past week. On the upside, XAG / USD is expected to cross September 22, October 8 highs at $ 23.15 to boost bull confidence, and attempt September 14, 16 highs at $ 24.00 ahead of the 3 September at $ 24.87.
On the downside, immediate support is at $ 22.15 (October 6 low) and below here, $ 21.37 (September 29 low) and 20.75 (50% Fibonacci retracement of the rally. from March-August 2020.
Technical levels to watch