Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Faces Volatility Amidst Dollar Sensitivity

[ad_1]

At the end of the day, silver faces a volatile environment as traders navigate uncertainties related to the US dollar and central bank meetings.

  • Silver experienced a back-and-forth trading session on Tuesday, reflecting the overall volatility in the markets.
  • The precious metal is highly sensitive to movements in the US dollar, and with the Federal Reserve’s meeting scheduled for Wednesday, it is expected that the greenback will exert its influence at some point.
  • Currently, the 50-Day Exponential Moving Average (EMA) is providing support, having played this role over the past few days. However, the $24.50 level has acted as a resistance, and a break above that level could lead to a potential move toward $25.

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker

 

On the downside, if the price falls below the recent candlestick lows, it may trigger a decline toward the $23.50 level. Further down, the 200-Day EMA around the $23 mark holds significant importance as an indicator that many traders look to when assessing long-term trends. As long as silver remains above the 200-Day EMA, it is likely that buyers will view any price drops as opportunities to acquire silver at relatively lower prices.

Presently, silver, along with gold, is being utilized as a means of wealth preservation. The market is characterized by noise as traders attempt to gauge the actions of central banks worldwide. It is worth noting that silver also has an industrial component, which adds an additional layer of complexity to its price dynamics. Concerns surrounding the global economy’s trajectory, whether it will continue to slow down or begin to strengthen, contribute to the market’s uncertainty.

In general, the silver market is expected to remain volatile. However, it is crucial to pay close attention to the movements of the US dollar, as it has a strong negative correlation with silver. The dollar’s performance can provide valuable insights into the potential direction of the silver market. That being said, the overall influence of the USD does wax and wane.

At the end of the day, silver faces a volatile environment as traders navigate uncertainties related to the US dollar and central bank meetings. The metal’s sensitivity to the greenback’s movements adds an extra layer of complexity. While silver serves as a wealth preservation asset, its industrial component further influences its price dynamics. The market is likely to remain noisy as traders monitor global economic conditions. Despite the volatility, there is underlying support for silver, but it is essential to monitor the US dollar’s performance for potential directional cues due to its inverse relationship with silver.

Silver

Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.