XAG/USD advances to near $23 on China’s dovish stance, US Q4 GDP eyed – Crypto News – Crypto News
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XAG/USD bears have the upper hand below $19.00 mark XAG/USD bears have the upper hand below $19.00 mark

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XAG/USD advances to near $23 on China’s dovish stance, US Q4 GDP eyed – Crypto News

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  • Silver price jumps to near $23, supported by PBoC’s dovish stance.
  • The US economy is expected to grew by 2% in the third quarter of 2023.
  • Silver price looks set to deliver a breakout of the Inverted H&S pattern.

Silver price climbs to near $23 after the People’s Bank of China (PBoC) announced a liquidity booster to uplift the economy that is struggling to recover post-pandemic. The PBoC is set to infuse liquidity of $140 billions into the banking system to support vulnerable economic growth.

S&P500 futures have generated some gains in the European session, portraying a risk-on mood. 10-year US Treasury yields have dropped to near 4.16%. The US Dollar Index (DXY) falls slightly to near 103.20 as investors shift focus towards the United States Q3 Gross Domestic Product (GDP) data, which will be published at 13:30 GMT.

As per the preliminary consensus, the US economy grew at a slower pace of 2.0% after expanding 4.9% in the third quarter of 2023. A slower growth rate would undermine the argument supporting a restrictive interest rate policy atleast until second quarter ends.

The hopes for an interest rate-cut by the Federal Reserve (Fed) has already eased significantly as the US economy is resilient on the grounds of labor market and consumer spending. •         As per the CME Fedwatch tool, chances in favour of an interest rate cut by 25 basis-points (bps) have dropped to 42.4%.

Silver technical analysis

Silver price aims to deliver a breakout of the Inverted Head and Shoulder chart pattern, formed on a two-hour scale. The neckline of the aforementioned chart pattern is plotted from January 17 high at $22.88. The 50-period Exponential Moving Average (EMA) around $22.60 continues to provide support to the Silver price bulls.

The 14-period Relative Strength Index (RSI) has shifted into the bullish range of 60.00-80.00, which indicates that an upside momentum has been triggered.

Silver two-hour chart

 

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