XAG/USD jumps higher on weaker US Dollar – Crypto News – Crypto News
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XAG/USD reaches key support area at $18.10 XAG/USD reaches key support area at $18.10

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XAG/USD jumps higher on weaker US Dollar – Crypto News

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  • The XAG/USD is hovering near the $24.30 mark, showing 0.60% gains.
  • The Q3 GDP real growth was revised to 4.9%, lower from the previous 5.2%.
  • The Fed’s dovish shifts and the US yields in multi-month lows make the metal gain appeal.

In Thursday’s trading session, the Silver’s spot price XAG/USD edged higher and reached a level of around $24.30. The primary driver of this upward trend has been the weakening of the USD following Gross Domestic Product (GDP) revisions and negative weekly Jobless Claims, which pushed the price higher.

In line with that, the US Bureau of Economic Analysis revealed on Thursday that the United States real GDP grew annually by 4.9% in Q3, which is a downward revision from previous estimates and market forecasts of 5.2%. In addition, the US Department of Labor’s initial Jobless Claims report for the week ending December 16 revealed an increase in claims to 205K, compared to the previous week’s 203K. Despite the rise, the figure was lower than the expected 215K. Personal Consumption Expenditures figures from the US from November are due on Friday, which may fuel additional volatility on the index.

On the other hand, US Treasury yields slightly recovered after hitting multi-month lows. The 2-year rate is seen at 4.30%, while both the 5-year and 10-year yields are seen at 3.89%, both near their lowest level since July. This came in line with the markets betting on a less aggressive Federal Reserve (Fed) after the Summary of Economic Proyections (SEP) revealed last week that the officials are seeing 75 bps of easing next year. In that sense, this downward trend bolsters non-yielding assets as Treasury bond yields are often perceived as the opportunity cost of holding such metals.

XAG/USD levels to watch

The daily chart suggests that the pair has an impressive buying momentum in the short term. The positive slope in the positive territory of the Relative Strength Index (RSI) signifies a strengthening in the power of buyers in the market. Further solidifying this bullish sentiment is the sight of the Moving Average Convergence Divergence (MACD) flashing rising green bars, typically signaling that the buyers have taken the reins of market momentum.

Supplementing this view, the pair’s position above the 20, 100, and 200-day Simple Moving Averages (SMAs) unequivocally outlines a robust control by the bulls in the broader time horizon.

Support Levels: $24.15 (20-day SMA), $23.60 (200-day SMA), $23.30.
Resistance Levels: $24.70, $24.90, $25.00.

XAG/USD daily chart

 

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