Silver Steady For Now

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Silver Steady For Now

Silver (Xag/Usd) Steady Around $28.00

Silver (XAG/USD) is trading above $28.00 and remains steady on Monday. On the way down, the first support is around $27.70, while the next one is $27.50.

For now, the Silver (XAG/USD) prices will remain capped amid a rebound in the US Dollar and the US bond yields. The recent upside in the US Dollar comes as there are now fewer chances of an aggressive rate cut from the Federal Reserve.

Dxy Trades Near 101.70

look at the DXY shows that it is now trading near 101.70 with a bullish bias. Similarly, the 10Y bond yields have moved higher to 3.75%. Both of these developments are not good for Silver (XAG/USD), and that's exactly why the Silver prices remain capped.

The recent strength of the US Dollar and the bond yields comes after the relate of August NFP report. The report showed a weaker reading but an uptick was seen in the earnings. Also, the unemployment rate has dropped a little during August which is also bullish for the US Dollar.

Meanwhile, now the attention has shifted to the US CPI for the month of August which is expected to show a steady jump. A higher-than-expected reading in the CPI could dent the prospects of the upcoming rate cut this month.

The technical analysis of Silver (XAG/USD) shows that it is trading inside a bearish channel, which is moving lower. The Silver (XAG/USD) has recently tried to challenge the 20 EMA which is located near $28.68.

Similarly, the RSI (14) on the Silver (XAG/USD) chart shows a trading between 40 - 60. Once again, this is a sign that more consolidation is on the cards for the Silver (XAG/USD) traders.

Once the Federal Reserve actually delivers the first rate cut this month, we may see increased volatility and a potential upside in the Silver (XAG/USD). The same goes for Gold and other precious metals, which will benefit from lower rates.

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