Jump to content

Silver Price Forecast: New Yearly Lows After Symmetrical Triangle Breaks - Levels for XAG/USD


Recommended Posts

SILVER PRICE OUTLOOK:

  • Silver prices broke out of multi-week symmetrical triangle to the downside as anticipated, falling to fresh yearly lows.
  • A steeper drop towards 18.7064 may be in its early stages.
  • However, recent changes in sentiment suggest that silver prices have a bullish bias in the near-term.

image.jpeg

FUNDAMENTALS SPUR TECHNICAL BREAKDOWN

Silver prices established a fresh yearly low today, continuing a stretch of sharp selling pressures after the symmetrical triangle noted last week gave way. These are the lowest levels seen since July 2020, and there’s little reason to think that the worst is over yet.

It remains the case that fundamental headwinds remain significant. The ongoing rise in US real yields – nominal US Treasury yields less US inflation expectations (as measured by breakevens and inflation swap forwards) – coupled with global recession concerns has curated a difficult environment for silver prices. Accordingly, nothing has changed: the “weak fundamental narrative for silver prices underpins a still-weak technical outlook.”

 

SILVER PRICES AND VOLATILITY RELATIONSHIP FLIPS

Both gold and silver are precious metals that typically enjoy a safe haven appeal during times of uncertainty in financial markets. While other asset classes don’t like increased volatility (signaling greater uncertainty around cash flows, dividends, coupon payments, etc.), precious metals tend to benefit from periods of higher volatility as uncertainty increases silver’s safe haven appeal. It may take another surge in US equity market volatility for silver prices to find some stability in the short-term.

Jun 30, 2022 | DailyFX
Christopher Vecchio, CFA, Senior Strategist

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • The mischievous amphibian who became a meme legend? Well, meet Apu, his wide-eyed, optimistic cousin, taking the internet by storm – and now, perhaps, the world of finance. Apu, also known as Peepo or Helper, is a kinder, gentler Pepe variant. Tired of the often-scammy memecoin scene, Apu (or rather, Apu's devoted community) decided to create something different: $APU, a "fairly launched, fully transparent coin" built by and for "all frens." Here's where things get interesting. $APU's narrative is one of resilience and community power. Fueled by the cryptocurrency community's enthusiasm, $APU was initially launched with the best of intentions. However, the dream took a nasty turn when the original developer pulled the rug – a disheartening scenario for many crypto enthusiasts. Today, $APU stands as a testament to community empowerment. It's a beacon of hope for projects facing similar challenges, a reminder that collaboration and resilience can transform setbacks into stepping stones. It's also worth noting that another community-driven memecoin, $MASSA, recently found a home on the Bitget exchange. Could this be a sign of things to come for $APU? What are your thoughts? Does Apu's story inspire you? Can a memecoin truly become a legitimate force in the volatile world of cryptocurrency? Share your thoughts and predictions in the comments below!
    • The price shown on the graph is the price after the IG's fee taken. That is the reason for discrepancy.
    • I am a relatively newbie. I have seen similar and also have seen automated closed position has a loss though the close price I have set was above the price I have bought. After about 6 months with a lot of mysterious losses though my closing price was above the opening price, I discovered this was because of the amount charged for opening/closing a position. This is right below BUY and SELL boxes on the right in very small font. This amount vary from  0.9 to 33 or more depending on the level of trading at the time you open or close. It also happens (god knows why it is set to be so, except that the trader is not watching) when there is a lot of buying and selling going on, like an important news has suddenly been out and the result was not the market expected. As a result, I delete all my automated BUY/SELL values before I stop trading for the day. Remember, the the software is set up to favor the IG, not the retail seller. That is why 70% or more end up in loss.  
×
×
  • Create New...
us