XAG/USD corrects from $25 as Fed’s preferred inflation tool remains sticky – Crypto News – Crypto News
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XAG/USD reclaims the $19.00 mark, gaining 3.86% in the week XAG/USD reclaims the $19.00 mark, gaining 3.86% in the week

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XAG/USD corrects from $25 as Fed’s preferred inflation tool remains sticky – Crypto News

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  • Silver price corrects sharply from $25.00 as the US PCE price index remains sticky.
  • The US Dollar Index (DXY) holds gains around 103.60 as persistent PCE data offsets the impact of the softer labor demand.
  • Silver price is approaching the horizontal resistance plotted from July 20 high around $25.27

Silver price (XAG/USD) faces selling pressure near the psychological resistance of $25.00 as the US Bureau of Labor Statistics reported that the Personal Consumption Expenditure (PCE) price index remained stubborn in July.

The monthly headline and core PCE grew at a stable pace of 0.2%. Also, the annual headline and core PCE accelerated marginally to 3.3% and 4.2% as expected by market participants.

Apart from that, the US Department of Labor reported weekly jobless claims data. For the week ending August 25, individuals claiming jobless benefits dropped to 228K vs. expectations of 235K and the former reading of 232K.

The US Dollar Index (DXY) holds gains around 103.60 and is looking to extend gains further as persistent PCE data offsets the impact of the softer labor demand reported by US Automatic Data Processing (ADP) for August, released on Wednesday.

After Fed’s preferred inflation measure, investors shift focus to the US Nonfarm Payrolls (NFP) data for August, which will be published on Friday at 12:30 GMT. As per the expectations, US labor formed witnessed a fresh addition of 170K payrolls, lower than July’s reading of 187K. The Unemployment Rate is seen unchanged at 3.5%. Apart from that, Average Hourly Earnings data will be keenly focused.

Silver technical analysis

Silver price is approaching the horizontal resistance plotted from July 20 high around $25.27 on a two-hour scale. Upward-sloping 50-period Exponential Moving Average (EMA) indicates that the upside momentum is extremely bullish.

The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, which indicates that the upside momentum is active.

Silver two-hour chart

 

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