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Silver Price Forecast: XAG/USD Climbs Above $25.00 Amidst Renewed US Banking Jitters and Risk-Off Mood

Silver Price (XAG/USD) has successfully surpassed the critical resistance level of $25.00 in the Tokyo trading session. The white metal has witnessed a surge in buying interest as investors seek refuge in bullions amidst disappointing earnings from S&P500 companies. In this article, we will delve deeper into the factors driving the silver price and provide a technical analysis of its performance.

Market Analysis:
The poor earnings and weak revenue guidance from S&P500 companies have raised concerns of an economic slowdown, which has led to a risk-off mood in the market. As a result, investors have turned towards safe-haven assets such as US Treasury bonds and bullions. Furthermore, renewed banking jitters after the quarterly results of First Republic Bank have underpinned the demand for bullions and US government bonds as a safe-haven. The bank reported a sharp fall in customers’ deposits, forcing the institution to rely on borrowings that attract higher interest rates.

The higher demand for US government yields has caused yields to drop significantly, with the 10-year US Treasury yields decreasing to 3.40%. Meanwhile, the US Dollar Index (DXY) has undergone a minor correction to near 101.83 after reaching a two-day high of 101.95. The demand for the US dollar has improved due to the mixed earnings of S&P500 companies and rising anxiety ahead of the interest rate decision from the Federal Reserve (Fed).



Technical Analysis:
The silver price is currently marching towards the upper portion of the Sideways Channel chart pattern formed on a two-hour scale. The chart pattern indicates a rangebound performance by the asset. The white metal has crossed the 20-period Exponential Moving Average (EMA) at $25.08 on the upside, indicating a bullish short-term trend. Moreover, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which signals that investors are waiting for a potential trigger for further action.

Conclusion:
The renewed US banking jitters and risk-off mood have driven the demand for safe-haven assets such as US Treasury bonds and bullions. As a result, the silver price has confidently shifted above the $25.00 resistance level. The technical analysis suggests a bullish short-term trend for silver. Going forward, the focus will be on the US Durable Goods Orders (March) data, which is expected to expand by 0.8% indicating forward demand for core goods.

BUY or SELL signal:
As the market sentiment is currently on a risk-off mood and investors are seeking safe-haven assets, it can be considered a BUY signal for the silver price. However, investors should always conduct their own research and analysis before making any investment decisions.

ANALYSIS
The Silver price (XAG/USD) has recently broken through a critical resistance level of $25.00 and is currently trading above this level. The white metal has witnessed a surge in buying interest due to the rising fears of an economic slowdown and renewed banking jitters. Disappointing earnings from S&P500 companies have also strengthened the appeal for bullions and US bonds. Moreover, the 10-year US Treasury yields have dropped heavily to 3.40%, indicating higher demand for safe-haven assets like silver.

From a technical standpoint, the Silver price is marching towards the upper portion of a sideways channel chart pattern formed on a two-hour scale. The asset has crossed the 20-period Exponential Moving Average (EMA) at $25.08 on the upside, indicating a bullish short-term trend. The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, indicating investors are awaiting a potential trigger for further action.

TRADE DETAILS
POSITION: Buy
ENTRY PRICE: $25.20
TAKE PROFIT: $27.00
STOP LOSS: $24.20
TIMEFRAME: 2-3 weeks


RISK MANAGEMENT
The Take Profit price is set at $27.00, which is a key resistance level. A break above this level could signal further bullish momentum. The Stop Loss price is set at $24.20, just below the support level of $24.50. This provides a Risk/Reward ratio of 1:2.5. The trade should be monitored closely for any changes in market conditions or news that could affect the trade.

FINAL THOUGHTS
Overall, the current market conditions for Silver price (XAG/USD) are bullish due to renewed banking jitters, rising fears of an economic slowdown, and the drop in US Treasury yields. Technical analysis also supports a bullish short-term trend. Therefore, it is recommended to take a long position on the currency pair with an entry price of $25.20, Take Profit of $27.00, and Stop Loss of $24.20 for a Risk/Reward ratio of 1:2.5.