Silver Price Forecast: XAG/USD Stumbles Below $36.50 Despite Softer U.S. CPI

Money, Money Tower, Coins, Euro, € Coin, Specie

Image Source: Pixabay


Silver price reverses course on Wednesday as the North American session ends, edging down 0.87%. Although US inflation eased in May, typically a signal that would support rate cuts by the Federal Reserve (Fed) and weigh on the US Dollar, it failed to underpin the grey metal. XAG/USD is trading at $36.21.


XAG/USD Price Forecast: Technical outlook

Despite retreating, XAG/USD remains poised to test higher prices. Momentum depicts that sellers stepped in as the Relative Strength Index (RSI) reached overbought territory. This, along with traders' booking profits, sent Silver prices below $36.50, which, once cleared, opened the door towards $36.00.

A breach of the latter will expose $35.40, a high point from October 2012, which has since turned into support. Once surpassed, the next stop is $35.00, followed by the $34.00 and $33.00 figures,

On the other hand, if XAG/USD reclaimed $36.50, the next target is $37.00. On further strength, prices could reach 37.49, a 13-year high set on February 29.


XAG/USD Price Chart – Daily

(Click on image to enlarge)


More By This Author:

Gold Price Rises On Soft U.S. CPI, Traders Price In Fed Rate Cuts
USD/JPY Price Forecast: Breaks Above 145.00 As Trade Hopes Lift USD
Silver Price Forecast: XAG/USD Pulls Back From $37.00 As U.S. Dollar Rebounds On U.S.-Sino Talks

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with