The UK economy expanded by 0.2%, coming in line with economists forecasts.
The CPI report in the US revealed that inflation was higher than expected in September.
US unemployment claims rose more than expected, indicating a weaker labor market.
The GBP/USD price analysis shows a small rebound in the pound after data revealed growth in the UK economy. Meanwhile, the dollar hovered near yesterday’s peaks after inflation numbers came in higher than expected.
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Data on Friday revealed that the UK economy expanded by 0.2%, coming in line with economists forecasts. However, investors maintained bets for a Bank of England rate cut during the November meeting.
Meanwhile, the CPI report in the US revealed that inflation was higher than expected in September. On a monthly basis, consumer prices increased by 0.2%, above forecasts of 0.1%. Meanwhile, annually, prices increased by 2.4%, above estimates of 2.3%. The unexpected jump led to a decline in Fed rate cut expectations, boosting the US dollar.
However, unemployment claims rose more than expected, indicating a weaker labor market. The mix of data put bets for a 25-bps November Fed rate cut at 80%. At the same time, market participants are pricing a 20% chance that the Fed will keep rates unchanged.
The next major report will be the Producer Price Index. Economists expect wholesale inflation to increase by 0.1%, down from 0.2% in August. If wholesale inflation also beats forecasts, rate cut expectations will keep falling.
Meanwhile, markets are paying close attention to Middle East tensions. The likelihood of a ceasefire between Israel and Hezbollah eased fears of escalation. However, there is still a risk of retaliation after Iran attacked Israel.
GBP/USD key events today
US Core PPI m/m
US PPI m/m
GBP/USD technical price analysis: Bearish momentum fades near 1.3051 support
GBP/USD 4-hour chart
On the technical side, the GBP/USD price remains in a tight consolidation near the 1.3051 support level. The bias is bearish because the price sits slightly below the 30-SMA. At the same time, the RSI trades below 50, supporting bearish momentum.
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However, the RSI has made a bullish divergence, indicating weakness in the downtrend. If it plays out, the price might break above the 30-SMA, showing a bullish reversal. A break above the SMA would allow GBP/USD to revisit the 1.3201 level.
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Silver oscillates in a range on the last trading day of the week.
A mixed technical setup warrants caution for aggressive traders.
Acceptance above $32.00 will set the stage for additional gains.
Silver (XAG/USD) struggles to capitalize on its modest intraday uptick and trades around the $31.15 region during the first half of the European session on Friday, nearly unchanged for the day.
Looking at the broader picture, this week’s bounce from the vicinity of the $30.00 psychological mark and a subsequent strength back above the $31.00 mark favors bullish traders. That said, the recent repeated failures to capitalize on momentum beyond the $32.00 mark constitute the formation of a bearish multiple-tops pattern. This, along with mixed oscillators on the daily chart, warrants caution before positioning for any meaningful appreciating move for the XAG/USD.
From current levels, the $31.55 region is likely to act as an immediate hurdle ahead of the $31.75-$31.80 area and the $32.00 mark. This is followed by resistance near the 32.25 supply zone, which if cleared decisively has the potential to lift the XAG/USD back towards the multi-year peak, just ahead of the $33.00 round figure touched last Friday. Some follow-through buying should pave the way for a move towards the December 2012 swing high, around the $33.85 region.
On the flip side, weakness below the $31.00 round figure now seems to find some support near the $30.70-$30.65 region ahead of the $30.35-$30.25 area and the $30.00 mark. The next relevant support is pegged near the $29.80-$29.70 confluence – comprising the 100-day Simple Moving Average (SMA) and the 50-day SMA. This should act as a key pivotal point, which if broken will set the stage for an extension of the recent decline from the highest level since December 2012.
The XAG/USD might then accelerate the downfall towards the $29.00 mark before eventually dropping to test the $28.60-$28.50 zone. The descending trend could extend further towards the $28.10-$28.00 region en route to the September monthly swing low, around the $27.70 area.
Gold price looks to extend the bounce from three-week lows ahead of US PPI data.
The US Dollar gives back US CPI-led uptick amid employment concerns, hawkish Fedspeak ignored.
Gold price finds footing again above 21-day SMA at $2,627, more recovery likely?
Gold price is looking to build on the previous recovery from three-week lows of $2,604 early Friday. Broad risk aversion and a modest US Dollar (USD) downtick support Gold price heading into the US Producer Price Index (CPI) data release due later on Friday.
US jobs worries outweigh hot inflation, lifting Gold price
Gold price continues to cheer the unfazed odds of a 25 basis points (bps) interest rate cut by the US Federal Reserve (Fed) in November. Markets currently price in about an 86% chance of such a move next month, according to the CME Group’s FedWatch Tool.
The health of the US labor market remains a concern for investors after Initial Jobless Claims surged by 33,000 last week to a seasonally adjusted 258,000 for the week ended October. 5. Discouraging US jobs data overshadowed the hot Consumer Price Index (CPI) inflation data for September, keeping the November rate cut hopes alive and kicking.
US annual CPI inflation dropped from 2.5% in August to 2.4% in September, the lowest level since February 2021, although still came in above the estimated 2.3% print. The CPI increased by 0.2% over the month in September, matching August’s increase and surpassing 0.1% expectations.
Therefore, the US Dollar failed to sustain its recovery momentum and pullback from two-month highs against its major rivals, as short-term two-year US Treasury bond yields tumbled. This helped Gold price stage a comeback from multi-week troughs.
The USD retracement was partly sponsored by the USD/JPY slide, fuelled by hawkish comments from Bank of Japan (BoJ) Deputy Governor Ryozo Himino, who said on Thursday that “if the outlook for economic activity and prices presented in the July report is achieved, the BoJ will accordingly raise interest rates.”
Late Thursday, slightly hawkish commentary from Atlanta Fed President Raphael Bostic was unable to lift the sentiment around the Greenback, leaving the buck on the back foot ahead of Friday’s US PPI inflation data.
Bostic said in a Wall Street Journal (WSJ) interview that he would be “totally comfortable” skipping an interest-rate cut at an upcoming meeting of the US central bank. He added that the “choppiness” in recent data on inflation and employment may warrant leaving rates on hold in November.
The dovish sentiment around the Fed rate cut expectations could be tested on the US PPI report, significantly impacting the value of the US Dollar and Gold price. The US PPI is seen easing to 1.6% YoY in September while the annual core PPI inflation is set to rise to 2.7% in the same period, against a 2.4% growth reported previously.
Gold price could continue to draw support from increased optimism about China’s fiscal stimulus package due to be rolled out on Saturday. Meanwhile, speeches from several Fed policymakers will also keep Gold traders entertained.
Gold price technical analysis: Daily chart
Buyers refused to give up on Thursday and jumped back into the game even after Gold price closed Wednesday below the key 21-day Simple Moving Average (SMA) support, then at $2,619.
Gold price recaptured the 21-day SMA support-turned-resistance, now at $2,628, on a daily closing basis on Thursday, reviving the uptrend.
The 14-day Relative Strength Index (RSI) looks north above the 50 level, suggesting that there is scope for more upside.
The next bullish targets for Gold price are seen at the $2,650 psychological barrier and the intermittent highs near $2,670.
On the downside, the immeddate support is seen at the three-week lows near the $2,600 threshold. A sustained break below the latter could extend the downside toward the September 20 low of $2,585.
Further declines could challenge the $2,550 demand area, where the 50-day SMA aligns.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Marginally lower crude, gasoline prices expected in rest of 2024
Agency cuts 2025 crude price outlook by $6.50/b for WTI, Brent
Expects dip in global liquid fuels demand, higher US output in 2025
The US Energy Information Administration Oct. 8 lowered its 2024 crude price forecasts by nearly $2/b, and by $6.50/b for 2025, as concerns over global demand growth outweighed the short-term uncertainty of potentially disruptive escalation between Israel and Iran in the Middle East.
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Concerns over global oil demand growth should cause oil prices to remain lower in 2024 and 2025 than previously forecast, the agency said in its October Short-Term Energy Outlook.
The EIA cut its 2024 forecast for Brent crude by $1.91 to $80.89/b. Citing a $6/b September drop in prices, the EIA also reduced its 2025 Brent outlook by $6.50 to $77.59/b. The agency forecast WTI crude down $1.89 from last month’s estimate for the year, while it lowered by $6.50 its expectation for 2025 to $73.13/b.
“Following the September drop in prices and our expectation that oil demand growth will be lower next year than we had previously forecast, we have lowered our forecast for crude oil prices despite increasing oil prices in early October,” the agency wrote in its outlook. “No oil supplies have been affected by increased military action in the Middle East at the time of STEO publication, and we do not assume any disruption in our forecast. However, the conflict has escalated in recent weeks with no timeline for a potential resolution, increasing the possibility for supply disruptions and price volatility. At the same time, we assess that significant surplus crude oil production capacity is available, which could be brought online in the event of a disruption.”
Inventories still falling
Thanks to OPEC+ production cuts, less oil is still being produced globally than consumed, and oil is being withdrawn from inventories, the EIA said, estimating global oil inventories fell by 800,000 b/d in the third quarter of 2024. It projected inventories to fall by 600,000 b/d in the first quarter of 2025, fueling its expectation of an increase in current Brent prices, albeit a smaller one than EIA forecast in September.
“By the middle of next year, we anticipate accelerated growth in oil production as OPEC+ increases its production and as production continues to grow in the United States, Guyana, Brazil and Canada,” EIA said.
In September, the EIA continued to lower its forecast of global consumption of liquid fuels, thanks in large part to ongoing reductions in China’s crude oil imports and refinery runs. The EIA cited recent monetary stimulus that could spur economic growth and greater crude demand in the country, but said it kept its China’s expected 2025 growth rate largely unchanged in October.
The agency nudged down its global oil demand outlook by 40,000 b/d for 2024 to 103.06 million b/d, and its 2025 estimate down 250,000 b/d, at 104.35 million b/d.
US gasoline expected to fall in 2025
The lower crude oil forecast pulled down expected US retail gasoline prices. While the EIA maintained its previous expectation of $3.33/gal in the rest of 2024, it saw gasoline prices declining to an average of $3.22/gal in 2025, down 7 cents from last month’s estimate.
The EIA also raised its expectations for 2025 retail diesel prices, putting the fuel at $3.55/gal next year, down 18 cents from the prior estimate. It expects diesel to remain steady in 2024, averaging $3.76/gal, down just 2 cents from its September estimate.
The EIA reduced its 2024 outlook for US oil production by 30,000 b/d to 13.22 million b/d, though it still expects output growth to continue into 2025 to put US crude production at 13.54 million b/d, a 130,000 b/d drop from last month’s estimate driven by a minor expected slowdown in US exploration and production activity, based on recent industry survey results.
This month, the agency also published its 2024 Winter Fuels Outlook, comprising its annual expectations for US residential energy consumption, prices and expenditures during the winter months, sources of which include natural gas, propane and heating oil alongside electricity. The EIA projected those costs to remain broadly level from last winter, with declining energy prices offsetting predictions of colder weather.
While producer prices are important, consumer sentiment trends could offer insight into consumer spending trends. Economists expect the Michigan Consumer Sentiment Index to rise from 70.1 in September to 70.8 in October. Improving sentiment may signal stronger demand, possibly offsetting the influence of producer prices on Fed policy bets.
Upbeat US data could drive the USD/JPY toward 150. However, weak numbers may signal a drop toward 147.5.
Short-term Forecast for USD/JPY
USD/JPY trends will likely hinge on the US data and central bank commentary. Softer producer prices and a fall in consumer sentiment could retrigger bets on a 50-basis point Fed rate cut. However, central bank commentary will be crucial following this week’s economic data releases.
Traders should stay alert as monetary policy chatter, Japan’s economic data, and the US economic indicators will affect trading USD/JPY strategies. Monitor real-time data, central bank views, and expert commentary to adjust your trading strategies accordingly. Stay ahead of the market with our expert insights.
USD/JPY Technical Analysis
Daily Chart
The USD/JPY hovers well above the 50-day EMA while remaining below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.
A USD/JPY break above the 200-day EMA could support a move toward the trend line and the 151.685 resistance level. Selling pressure could intensify at the resistance level. The trend line is confluent with it.
Consumer sentiment, producer prices, and central bank commentary require close monitoring.
Conversely, a break below the 148.529 support level could signal a fall to 147.5. A drop through 147.5 could give the bears a run at the 50-day EMA.
The 14-day RSI at 61.73 suggests a USD/JPY return to 150 before entering overbought territory.
Amidst a divided Federal Reserve on the size of US interest rate cuts in September, the EUR/USD exchange rate moved towards the support level of 1.0936, its lowest in seven weeks.
Further supporting the US dollar’s gains were the minutes of the Federal Open Market Committee meeting, which revealed that Fed officials were uncertain about the extent of US interest rate cuts at their September meeting but opted for a half-point cut to balance inflation concerns with Labor market concerns.
Ultimately, only Governor Bowman opposed a 50-basis-point cut, preferring a 25-basis-point cut instead – marking the first dissent by a Fed governor on US interest rates since 2005. Moreover, The Fed indicated that the 50-basis-point cut should not be interpreted as evidence of a less favourable economic outlook or as a signal that the pace of policy easing would be faster than participants’ assessments of the appropriate path.
Additionally, almost all members expressed confidence that inflation is moving sustainably towards 2%. The Federal Reserve had lowered the target range for the federal funds rate by 50 basis points to 4.75%-5% in September 2024, the first cut in borrowing costs since March 2020, and expects 100 basis points of easing by the end of the year.
Prior to that, the yield on the 10-year German bond declined from a 5-week high. According to reliable trading platforms, the yield on the 10-year German bond declined to 2.235% from a five-week high, as investors await the European Central Bank’s monetary policy meeting next week, where another interest rate cut is widely expected. Many European Central Bank policymakers are pushing for another cut, driven by the economic slowdown and rapidly slowing inflation, although some remain cautious. After two cuts this year, financial markets expect the deposit rate to be cut to 3.5% on October 17, with further cuts possible. Furthermore, European Central Bank President Francois Villeroy de Galhau and Bank of Greece Governor Yannis Stournaras support successive cuts. Meanwhile, European Central Bank President Christine Lagarde’s comments have reinforced these expectations.
However, Belgium’s Pierre Wunsch remains undecided, citing concerns over persistent domestic inflation and rising energy costs linked to tensions in the Middle East. Also, financial markets are expecting the deposit rate to fall to 3% by the end of the year.
According to stock trading platforms, the German DAX index was largely unchanged. The DAX index was little changed at 19,070 on Wednesday, tracking a generally cautious sentiment among its European peers as the wave of stimulus coming from China faded and traders continued to await more details about the measures announced by the Chinese authorities. At the same time, investors are refraining from making significant bets ahead of the FOMC meeting minutes and the US Consumer Price Index report scheduled for today, which could provide more clarity on the Federal Reserve’s next moves.
In Europe, the European Central Bank is expected to deliver another 25bp cut in borrowing costs next week. On the economic data front, exports from Germany unexpectedly increased in August while imports fell more than expected. Bayer (-5.1%) was the worst performer, followed by Rheinmetall (-1.5%). Continental, on the other hand, rose more than 5% after the company forecast improved profitability in the third quarter.
EUR/USD Technical analysis and forecast:
Based on the daily chart attached, as mentioned earlier, the downward movement of the EUR/USD pair will remain the strongest as long as it remains below the 1.1000 support level. According to performance and ongoing pressures, attention will be directed towards the 1.0880 support level, which may in turn push technical indicators towards oversold levels. From below this level, buying the pair may be considered, but without risk. Conversely, and on the same timeframe, the EUR/USD pair will not return to its upward path without crossing the 1.1120 resistance again.
As you can see, the British Pound has pulled back just a bit during the trading session on Thursday as we continue to dance around the 1.30 level.
The 1.30 level is an area that a lot of people would be looking at as the level has previously been resistance and support.
So, with this being the case, I think you’ve got a situation where all this market memory should come into the picture to support the British pound.
Keep in mind, the markets will continue to look at this through the prism of what the Federal Reserve is doing more than anything else. As a result, I think you’ve got to look at this as a potential buying opportunity, but if we were to break above the 50 day EMA, then it’s possible that the market could go looking to the 1.33 level. At this juncture, I don’t have any interest in trying to short this pair, although I recognize that the market is probably going to continue to be noisy, and we could very well break down below the 1.30 level.
I am Not Keen on Shorting the Pound
But in this scenario, I would be more apt to buy the US dollar against something else, not necessarily the British pound itself. If we do break above the 50 day EMA, then I think a move to the 1.33 would also open up the possibility of other currencies gaining against the green bank.
The British pound has been one of the better performers and that’s not a huge surprise considering that the interest rate differential is essentially nil between England and the United States. Unlike other currencies like the Euro or perhaps a Canadian dollar, this is a pretty equal fight when it comes to that. So, pay attention, this is probably all about risk appetite at this point
EUR/USD trades at its lowest level in nearly two months below 1.0950.
The hawkish tone in FOMC minutes boosted the US Dollar on Wednesday.
Investors await September Consumer Price Index data from the US.
EUR/USD came under renewed bearish pressure in the late American session on Wednesday and ended the day deep in negative territory. The pair stays on the back foot early Thursday and trades at its lowest level since mid-August below 1.0950.
Euro PRICE This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the US Dollar.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
0.27%
0.21%
0.13%
1.15%
0.94%
1.27%
0.09%
EUR
-0.27%
0.01%
-0.11%
0.91%
0.65%
1.00%
-0.20%
GBP
-0.21%
-0.01%
-0.14%
0.91%
0.64%
1.02%
-0.10%
JPY
-0.13%
0.11%
0.14%
1.02%
0.79%
1.09%
-0.00%
CAD
-1.15%
-0.91%
-0.91%
-1.02%
-0.18%
0.12%
-1.05%
AUD
-0.94%
-0.65%
-0.64%
-0.79%
0.18%
0.39%
-0.81%
NZD
-1.27%
-1.00%
-1.02%
-1.09%
-0.12%
-0.39%
-1.14%
CHF
-0.09%
0.20%
0.10%
0.00%
1.05%
0.81%
1.14%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
The hawkish tone in the minutes of the Federal Reserve’s (Fed) September policy meeting helped the US Dollar (USD) outperform its rivals late Wednesday, forcing EUR/USD to stretch lower.
The publication showed that even though a substantial majority of Fed officials supported the 50 basis points (bps) rate cut, there was even a broader consensus that this initial step would not lock the Fed into any specific pace for future rate cuts. Additionally, some participants favored only a 25 bps reduction in the policy rate cut, while “a few others” mentioned they could have supported that decision as well.
The US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for September later in the day. The annual CPI inflation is forecast to decline to 2.3% from 2.5% in August. The core CPI, which excludes volatile food and energy prices, is seen rising 0.2% on a monthly basis.
It will likely require a significant downside surprise, a reading of 0% or lower, in the monthly core CPI data for investors to reconsider the probability of another large Fed rate cut in November. In this scenario, EUR/USD could stage a steady rebound. On the flip side, a print at or above the market forecast could help the USD hold its ground.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart stays near 30, suggesting that the pair is about to turn technically oversold. On the upside, immediate resistance is located at 1.0950 (static level, Fibonacci 61.8% retracement of the latest uptrend). In case EUR/USD stabilizes above this level and confirms it as support, it could edge higher toward 1.1000 (Fibonacci 50% retracement) and 1.1050 (Fibonacci 38.2% retracement).
Looking south, interim support could be spotted at 1.0900 (round level) before 1.0870 (Fibonacci 78.6% retracement) and 1.0800 (round level).
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Silver oscillates in a range and remains close to a multi-week low touched on Tuesday.
The technical setup favors bearish traders and supports prospects for further losses.
Bears still need to wait for a sustained break below $30.00 before placing fresh bets.
Silver (XAG/USD) lacks any firm intraday direction on Thursday and oscillates in a narrow trading band around mid-$30.00s through the first half of the European session. The white metal remains within the striking distance of a nearly three-week low touched on Tuesday and seems vulnerable to prolonging its rejection slide from the $33.0 neighborhood, or the highest level since December 2012 set last week.
The recent repeated failures to capitalize on momentum beyond the $32.00 mark constitute the formation of a bearish multiple-tops on the daily chart. Moreover, oscillators on the daily chart have started gaining negative traction and add credence to the near-term bearish outlook for the XAG/USD. That said, it will still be prudent to wait for a sustained break and acceptance below the $30.00 psychological mark before positioning for any further depreciating move.
The subsequent downfall could drag the XAG/USD to the $29.75-$29.60 confluence support – comprising the 100-day Simple Moving Average (SMA) and the 50-day SMA. A convincing break below the latter should pave the way for a fall towards the $29.00 mark en route to the next relevant support near the $28.60-$28.50 zone.
On the flip side, any attempted positive move now seems to confront resistance near the $31.00 horizontal support breakpoint. Some follow-through buying, however, might trigger a short-covering rally and allow the XAG/USD to reclaim the $32.00 mark, with some intermediate hurdle near the $31.55 area and the $31.75-$31.80 region. The momentum could extend further towards the $32.25 supply zone en route to the multi-year peak, just ahead of the $33.00 round figure.
Silver daily chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Canadian Dollar.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
0.15%
0.31%
-0.45%
0.35%
0.05%
-0.27%
-0.32%
EUR
-0.15%
0.16%
-0.60%
0.19%
-0.11%
-0.38%
-0.47%
GBP
-0.31%
-0.16%
-0.76%
0.05%
-0.34%
-0.53%
-0.66%
JPY
0.45%
0.60%
0.76%
0.80%
0.47%
0.18%
0.11%
CAD
-0.35%
-0.19%
-0.05%
-0.80%
-0.31%
-0.57%
-0.69%
AUD
-0.05%
0.11%
0.34%
-0.47%
0.31%
-0.27%
-0.32%
NZD
0.27%
0.38%
0.53%
-0.18%
0.57%
0.27%
-0.12%
CHF
0.32%
0.47%
0.66%
-0.11%
0.69%
0.32%
0.12%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
