Silver Price Analysis: XAG/USD recovery attempts remain limited below $23.00
- Silver remains under pressure, with upside attempts limited below $23.00.
- The Dollar is showing muscle with investors awaiting the US Retail Sales report.
- XAG/USD: Below $22.50 bearish momentum will increase.
Silver (XAG/USD), is trading lower for the second consecutive day on Wednesday. The US Dollar remains bid with investors scaling back hopes of Fed easing in 2024 and risk-averse trading, which is acting as a headwind for precious metals.
Fed Governor Christofer Waller discarded any rate cut as long as inflation remains at “striking distance” to the bank’s 2% target, which cast further doubt on investors’ hopes of a major policy shift.
The focus today is on the US Retail Sales. Consumption is expected to have improved in December adding to evidence that the economy remains resilient and strengthening the US-Dollar supportive soft landing narrative.
Somewhat later an array of Fed policymakers will meet the press, likely to strengthen the “higher for longer “ rhetoric.
XAG/USD remains hovering above $22.50 support
The pair is trading within a falling triangle, with price action unable to put a significant distance from the $22.50 support area. Below here, selling pressure might increase, with bears focusing on the $21.90 level.
On the upside, a bullish reaction above $23.53 would ease downside pressure and expose the $24.60 level.
Technical levels to watch