XAG/USD reclaims the $19.00 mark, gaining 3.86% in the week

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XAG/USD stabilizes above $23, supported by multiple tailwinds – Crypto News

Published

3 years ago

October 21, 2023

Dripp

Silver price seems stable above $23.00 as safe-haven demand remains intact.
The market mood remains downbeat as Israel plans to destroy Hamas’s military in Gaza.
Fed Bostic said a slowdown is coming but the economy won’t see a recession.

Silver price (XAG/USD) managed to shift auction above the crucial resistance of $23.00 in the late European session. The white metal remains firm as the deteriorating situation in Gaza due to deepening conflicts between the Israeli army and Palestine’s military group has strengthened the appeal for safe-haven assets.

The market mood remains downbeat as Middle East tensions are expected to escalate as Israel’s defense chief instructed troops to enter Gaza and destroy the Hamas military. Losses in the S&P500 futures deepened in the London session as the third-quarter result season started.

The demand for safe-haven assets has also improved due to neutral guidance from Federal Reserve (Fed) Chair Jerome Powell at New York’s Economic Club. The commentary from Fed Powell indicated that bond yields are sufficiently high and effective to compress overall spending and investment.

Meanwhile, Atlantic Fed Bank President Raphael Bostic said in an interview with CNBC that a slowdown is coming but the economy won’t see a recession. Bostic remains confident that the central bank will get inflation under control. He forecasted that the Fed would cut interest rates in late 2024.

Silver technical analysis

Silver price trades in a Rising Channel chart pattern on an hourly scale in which each pullback is considered a buying opportunity by the market participants. The 50-period Exponential Moving Average (EMA) at around $23.00 continues to provide support to the Silver price bulls. Horizontal resistance is plotted from September 29 high at $23.56.

The Relative Strength Index (RSI) (14) shifts into the 40.00-60.00 range from the bullish range of 60.00-80.00. This indicates that the upside momentum has concluded while the overall trend is still bullish.